UK economy grew by more than expected in May, helped by house-building

Britain's economic output rose by 0.4% in May, a bigger rise than expected and helped by a jump in housing construction, according to official data that will be welcomed by the new government of Prime Minister Keir Starmer.

A Reuters poll of economists had pointed to a 0.2% increase for monthly gross domestic product in May.

The data from the Office for National Statistics revealed a broad-based increase in economic output, with the services, manufacturing and construction industries all growing, the latter up by 1.9% on the month, driven by the housing sector.


Over the three months to May, the economy expanded by 0.9%, the strongest reading since the three months to January 2022, compared with the consensus forecast for a 0.7% expansion.

The Bank of England last month said it expected the economy would grow by 0.5% over the second quarter.

"The economy grew strongly in May with all the main sectors seeing increases," ONS Director of Economic Statistics Liz McKeown said. "Many retailers and wholesalers had a good month, with both bouncing back from a weak April."