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ICAEW responds to today’s UK GDP figures

Author: ICAEW

Published: 13 Jul 2022

Responding to the UK GDP figures for May 2022, released by the Office for National Statistics today (Wednesday 13 July 2022), Suren Thiru, Economics Director for ICAEW, said:

“The latest figures confirm that there was a better than expected rally in economic activity in May. While all sectors reported solid growth, the key services sector was the largest contributor to overall GDP growth, reflecting a large rise in GP appointments.

“Solid growth in May should be followed by a notable drop in output in June as the working days lost due to the Jubilee bank holiday and surging inflation – including from record fuel prices – drag on activity.

“The UK economy remains perilously close to recession. Prolonged political uncertainty could weaken economic conditions by stifling investment and adding to inflation, through triggering further falls in sterling’s value.

“While targeted fiscal support is required to protect people and businesses who are being hardest hit, more focus is needed to ease the supply side constraints that continue to stoke inflation and limit economic activity.”