UK's economic recovery putting down roots

12 Jul 2024

The UK's economic recovery is finally putting down roots after GDP grew faster than expected in May, says the Confederation of British Industry (CBI).

The UK economy expanded by 0.4% in May, rebounding from zero growth in April, according to the Office for National Statistics (ONS).

The growth figures helped by a strong performance from retailers and the construction industry, added the ONS.

Ben Jones, CBI Lead Economist, said: 'The latest data shows that the UK's economic recovery is starting to put down roots. While growth in May was driven by a rebound in sectors such as retail and construction, which were hit by poor weather earlier in the spring, recent months have seen activity creeping up across a wide range of sectors.

'The new Labour government will benefit from some economic tailwinds going forward, with consumer confidence rising as lower inflation and strong wage gains support household incomes. However, many firms remain cautious about the near-term outlook.

'While the outcome of the election will help dispel some of the recent uncertainty, it could take a turning of the interest rate cycle for the recovery to really bed in.

'The new government's focus on making growth a priority is welcome. However, to put the economy on a pathway to long-term, sustainable growth, we need to see concrete actions to deliver that vision within the next 100 days.'