He said: “It’s always great to see the economy growing, but I’m not complacent. I know people are concerned, so we continue to support families and economic growth. “We are working together with the Bank of England to reduce inflation and I am confident that we can create a stronger economy for everyone across the UK.” ONS director of economic statistics Darren Morgan said: “The economy bounced back in May with growth across all main sectors. “Health was the biggest driver with many more people visiting GPs, despite the test and trace and vaccination programs ending.” Brexit LIVE: Horror as Brexiteers leave door wide open for ‘student’ Sunak He added: “Road hauliers also had a busy month, while travel agencies did well with reduced demand for summer holidays. “There was broad-based growth across manufacturing after several difficult months, while construction did well with house-building and office renovations leading growth.” The figures were released amid concerns that Britain could be hurtling into recession, with households and businesses hit by a cost-of-living crisis. The risk of a UK recession in the next 12 months is now almost 50-50, according to a Bloomberg survey underscoring the worsening outlook for the economy. The latest ONS data was more positive than experts expected and came just a week after the Bank of England’s chief economist, Huw Pill, said he would be open to voting for a bigger move than the 0.25 increases percentage units applied so far, if warranted. Speaking at a banking conference, he expressed his “willingness to adopt a faster pace of tightening”, but stressed that this would depend on “the data we see and my interpretation”. He stressed that “a lot remains to be resolved before we vote on our August political decision.” Mr Peel reiterated the Bank’s commitment in June to “act strongly” to tackle the threat of long-term high inflation. However, he also said he preferred a “steady” approach for now, warning that “individual bold moves” could be “disturbing in terms of their impact on financial markets”. If the Bank raised interest rates from 1.25% to 1.75% in August, it would mark the biggest single rise since it gained independence in 1997. Financial markets see a 60% chance of that happening, and if it did, it would echo similar moves from the US central bank.
