UK economy grew 1.8% in May but output still a quarter below pre-crisis levels

The UK economy grew by 1.8% in May as activity began to recover with the easing of coronavirus lockdown but remained a quarter below its pre-pandemic levels, according to official data.

The Office for National Statistics (ONS) said the economy eked out growth as manufacturing and housebuilding showed signs of recovery after restrictions began to be lifted in May.

Despite the month-on-month increase in gross domestic product (GDP), output is still a long way from recovering from the record falls seen in March and April when Britain was in full lockdown – and was 24.5% lower compared with February before the crisis struck.

May’s GDP growth is also far short of the 5% rise expected by most economists.

Jonathan Athow, deputy national statistician at the Office for National Statistics (ONS), said of the May economy figures: “Manufacturing and house-building showed signs of recovery as some businesses saw staff return to work.

“Despite this, the economy was still a quarter smaller in May than in February, before the full effects of the pandemic struck.

“In the important services sector we saw some pick-up in retail, which saw record online sales.

“However, with lockdown restrictions remaining in place, many other services remained in the doldrums, with a number of areas seeing further declines.”