Commenting on ONS data that shows monthly GDP rose by 0.5% in May 2022 over April, Kitty Ussher, Chief Economist at the Institute of Directors, said:
“This is reassuring news for business leaders, who we know have been feeling worried about the state of the economy.
“Although consumer-facing services are still below their pre-pandemic levels, its important to remember that this category includes commuter travel so will have been permanently affected by the shift to home-working.
“And while many people are undoubtedly feeling the pressure on household bills, the much publicised weakening in retail sales is also partly offset by consumers switching back to spending on the separate category of tourism travel.
“Overall there’s nothing in this data that will prevent the Bank of England from continuing to raise interest rates when it meets over the summer.”