British economy grows by 0.4% in May

Preliminary figures published by the Office of National Statistics on Thursday showed that the British economy grew by 0.4% in May, with the pound sterling jumping to a 4-month high against the US dollar.

The gross domestic product was higher than the monthly expansion forecast of 0.2% in a Reuters poll of economists.

The country’s dominant services sector showed sustained growth of 0.3% in May, as output in both production and construction rebounded from losses, rising by 0.2% and 1.9%, respectively.

The British pound was up 0.05% against the US dollar at $1.2859 by 7:17 a.m. in London, the highest level for the British currency since March 8, 2024, according to LSEG data.

Last week, Goldman Sachs updated its growth forecasts for Britain after the landslide victory achieved by the center-left Labor Party in the country’s general elections. The party campaigned on a platform focused on promoting economic growth, housing and planning.

The party’s large parliamentary majority and business-friendly messaging have led analysts to describe the government as generally supportive of British assets.