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The UK’s recovery slowed in May as supply shortages disrupted car production, offsetting a strong rebound in the hospitality sector and the rollout of the vaccination programme.
The volume of goods and services produced in the UK grew by 0.8 per cent month on month, the Office for National Statistics said, less than economists had expected after an exuberant rebound in April as the economy began to reopen.
That took growth over the three months to May to 3.6 per cent and left economic output 3.1 per cent below its pre-pandemic level, the narrowest gap since the start of the crisis.
The expansion was driven by the reopening of indoor hospitality, with the service sector growing 0.9 per cent, fuelled by a 37.1 per cent expansion in accommodation and food service as restaurants and pubs allowed customers back indoors after the easing of restrictions.
 “It’s great to see people back out and about thanks to the success of the vaccine rollout, and to see that reflected in today’s figures for economic growth,†said Rishi Sunak, chancellor, adding that the government was continuing to support the recovery through the furlough scheme and through help for jobseekers.Â
The production sector returned to growth, largely due to bad weather than boosted output in the energy sector, the ONS said. But its performance was weighed down by a 16.5 per cent drop in the manufacturing of transport equipment — due to the global microchip shortages that disrupted car production. The construction sector also contracted slightly, but remained above pre-pandemic levels.
Yael Selfin, economist at KPMG, said the slower pace of growth was to be expected as the recovery matured. She added: “We still expect the economy to run hot over the coming months, with pent-up demand fuelling many industries. However, bottlenecks are already starting to emerge across various sectors — from labour shortages to supply chain pressures — as a result of the speed with which many are keen to reopen.â€
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