London skyline on June 10, 2024 in London, United Kingdom. The City of London is a city, ceremonial borough and local government area containing the core central business district of London. The City of London is widely referred to as the City, and is also known as the Square Mile.
Mike Kemp | In Pictures | Getty Images
LONDON – The UK economy grew by 0.4% in May, preliminary figures released by the Office for National Statistics showed on Thursday, with the pound rising to a four-month high against the US dollar after the announcement.
GDP came in above expectations for a 0.2% monthly expansion in a Reuters poll of economists.
The UK economy emerged from a shallow recession in the first quarter of the year, then stabilised in April.
The country’s dominant services sector showed continued growth of 0.3% in May, as output in both production and construction rebounded from losses, rising 0.2% and 1.9% respectively.
The pound was up 0.05% against the US dollar at $1.2859 by 7:17 a.m. in London – the highest level for the British currency since March 8, 2024, according to LSEG data.
The newly elected Labour Party will welcome a broad-based recovery, as Prime Minister Keir Starmer begins his first week in office.
Last week, Goldman Sachs raised its growth forecast for the UK following the landslide victory of the left-wing Labour Party in the country’s general election. The party campaigned on a platform of boosting economic growth, housing and planning.
The party’s large parliamentary majority and pro-business messaging have led analysts to describe the government as generally pro-British.
This is a breaking news story and will be updated soon.
