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Europe

UK GDP expanded by 0.4% in May

The UK economy has returned to growth after stalling in April, performing better than expected. As the country leaves behind a historic general election, the state of the economy is of utmost importance for prime minister Keir Starmer's government. GDP expanded by 0.4-percent in May, driven by the services sector which grew by 0.3 percent On a year-on-year basis, the growth was 1.4%, higher than the 1% expected .Meanwhile its trade deficit shrank to 6.29 billion dollars from a downwardly revised 8.25 billion the previous month. Industrial production and construction output both rebounded over the month, after a sharp decline in April due to wet weather. In the first quarter, the UK economy grew by 0.7-percent, after entering a recession late last year, recording two consecutive quarters of contraction. The country's inflation level fell to the Bank of England's 2-percent target in the 12-months to May for the first time in nearly three years. Despite cooling consumer prices, the central bank has held rates steady at 5.25% seeking more evidence of stable price pressures before cutting rates.