UK economy rebounds more slowly than expected
The UK economy shrank by 19.1 per cent in the three months to May, according to the latest data.
The Office for National Statistics show despite the UK's economic contraction, there has been signs of recovery, as GDP grew by 1.8 per cent in May. However, despite May’s GDP growth, it was far short of the five per cent rise expected by many economists.
The increase came after a fall of 6.9% in March and a record 20.4% decline in April. In the three months to May, the economy shrank by 19.1% compared with the previous three-month period, the ONS said.
Manufacturing and house building showed signs of recovery in May as some firms saw staff return to work. But the Office for National Statistics said the economy was "in the doldrums".
As a result of big contractions in previous months, the UK economy is now 24.5% smaller than it was in February, the ONS added.
"Today's figures underline the scale of the challenge we face," said Chancellor Rishi Sunak.
"Our clear plan invests up to £30bn in significant and targeted support to put people's livelihoods at the centre of our national renewal as we emerge through the other side of this crisis."
Posted on Jul 13, 2020.