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UK GDP rises in May, stalling recessionary fears

However, the headline number does not show the full picture.

13 July 2022

UK GDP surprisingly rose in May by 0.5% following April’s 0.2% decline. The UK economy feels like it has been flatlining since the start of the year now and some have suggested that it is perilously close to falling into recessionary territory but today’s print may have averted that, albeit temporarily. However, the numbers do not immediately foretell better times ahead – visits to the doctors surged 15% in May and helped account for a jump in services which offset much weaker spending in retail and hospitality as the cost living crisis continues to impact consumer behaviour. As ever, the headline number does not show the full picture and it is depressingly stark that the UK economy had to rely on a nation looking to improve its collective health to show any growth at all.

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The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.

Charles Hepworth

Investment Director

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