Britain's economy rebounded in May, official data showed Wednesday, dampening fears of a slowdown despite surging inflation and rising interest rates.
Gross domestic product expanded 0.5 per cent, the Office for National Statistics said in a statement, beating expectations of zero growth.
"The economy rebounded in May with growth across all main sectors," said Darren Morgan, ONS director for economic statistics.
The broad rebound was driven by a bounceback in construction, manufacturing and services.
That followed a 0.2-per cent decline in April, which was revised up from a 0.3-per cent contraction.
"Health was the biggest driver, with many more people seeing GPs, despite test and trace and the vaccination programmes winding down," added Morgan.
"Road hauliers also had a busy month while travel agencies fared well with pent-up demand for summer holidays.
"There was widespread growth across manufacturing after several tough months while construction also fared well with housebuilding and office refurbishment driving growth."
The Bank of England has hiked interest rates five times since December in a bid to tame runaway inflation, which has sparked a cost-of-living crisis in Britain.
UK inflation spiked in May to a 40-year peak of 9.1 per cent, a level set to hit double figures this year on soaring energy and food prices according to the BoE.
The UK government meanwhile welcomed Wednesday's upbeat data.
"It's always great to see the economy growing but I'm not complacent," said finance minister Nadhim Zahawi.
"I know people are concerned so we are continuing to support families and economic growth."
Zahawi is among eight Conservative MPs vying to become Britain's next prime minister following last week's resignation of scandal-hit Boris Johnson as Conservative Party leader.
Capital Economics analyst Paul Dales said the economy was "resilient" but warned over the ongoing risk of recession due to rampant price rises.
Poisoned chalice?
"It is far too soon to conclude that the economy will be able to get through this period of unusually high inflation largely unscathed," Dales said.
"With real household disposable incomes set to fall further in the third quarter, a recession is still a real risk.
"That may mean the economy proves to be a poisoned chalice for whoever wins the race to be the next Prime Minister."
Many economists fear the economy could also stumble in June due to the long bank holiday weekend that marked Queen Elizabeth II's Platinum Jubilee.
Wednesday's data could encourage the BoE to implement a half-point rate hike at its next meeting in August, Dales added.
The central bank in June lifted the cost of borrowing by a quarter-point to 1.25 per cent, the highest level since the global financial crisis in 2009.
Britons, like others in many countries, are grappling with soaring consumer prices fuelled partly by fallout from Russia's war on Ukraine, which has destabilised energy markets.
Indian High Commissioner Vikram Doraiswami highlighted inclusiveness and sustainability.
Leicester hosted scaled-back celebrations without fireworks after a safety review.
Cities across England marked the festival with community events.
THE ROYAL Family and UK prime minister Keir Starmer shared Diwali greetings on Monday, as the High Commission of India in London highlighted inclusiveness and sustainability as key messages of the Festival of Lights.
“Wishing a very happy Diwali to everyone celebrating the Festival of Lights in the UK and around the world,” reads a message from Buckingham Palace, shared across all its social media platforms.
Starmer also took to social media to wish “Hindus, Jains and Sikhs across Britain a joyful and peaceful Diwali and Bandi Chhor Divas”. The prime minister, who attended the Gaza peace summit in Egypt during the Diwali festivities at 10 Downing Street last week, reflected on his visit to Mumbai earlier this month in his post.
“Earlier this month, I lit a diya in Mumbai as a symbol of devotion, joy, and renewed bonds. As we celebrate this Festival of Lights, let’s keep building a Britain where everyone can look ahead with hope,” he said.
Opposition Conservative Party Leader Kemi Badenoch described the festival as a “celebration of light over darkness, hope over despair, and the power of family, community and faith”.
“Wishing a very Happy Diwali to all those celebrating the festival of lights in the UK, India, and around the world. May this Diwali bring blessings, peace, and prosperity to everyone,” said Priti Patel, the shadow foreign secretary.
Indian High Commissioner to the UK, Vikram Doraiswami, in a video message, called Deepavali one of the central elements of India’s festive calendar.
“It is celebrated across all communities as an opportunity to bring together families and friends and celebrate the joys of the changing season, and the start of the cool season,” said Doraiswami.
“It is one of our most beloved festivals, not least because of the lights and traditional diyas that are lit up, but also for the opportunity to spend time with friends and family. Diwali these days is seen as an opportunity for an inclusive festival, a sustainable festival,” he said.
“Sustainability not just purely in the environmental sense with the use of renewables in our lights and displays, but also in terms of ensuring that you make it sustainable by bringing together all communities amongst whom you live,” he added.
“That is particularly applicable here in the United Kingdom as we celebrate the start of what is a longer festive season that continues right through to the end of the year,” he said.
Many of the annual Diwali festivities in the UK, including the Mayor of London’s Diwali on the Square, took place earlier this month.
In Leicester, known for its large-scale Diwali celebrations, this year’s event was scaled back with no fireworks display following a local council safety audit. The city’s Diwali Day celebrations were centred around a Wheel of Light — a 110-foot-high Ferris wheel on the Golden Mile at Belgrave Road — which was closed to traffic and lit up with thousands of colourful lights.
“We know that this year’s celebrations will feel different, but our priority must be the safety of the public,” said Councillor Vi Dempster, Leicester’s assistant city mayor for culture.
“We are absolutely determined that Diwali continues to be part of the city’s festive calendar. We will be working with partners and the local community to explore options for how the city builds on its proud tradition of bringing our communities together to celebrate the Festival of Light,” she said.
Meanwhile, Basingstoke and Reading in southern England hosted outdoor Diwali celebrations organised by Kala the Arts over the weekend, attracting hundreds of people.
The events featured theatrical processions with illuminated puppets, dhol music, classical dance performances, and lantern installations as part of the free-to-attend festival, now in its fifth year.
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