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UK economy expands 0.3% in May, yet services stagnate

UK economy expands in May, yet services stagnate

Britain’s economy reported a growth similar to forecasts in May after pick up in IT, communications and retail, yet the dominant services sector stagnated, data from the ONS showed on Wednesday.

U.K. GDP signaled a 0.3 percent growth in May, following a contraction of 0.4 percent in April, while March’s reading was revised up to 0.1 percent growth from 0.1 percent drop.

In the March-May quarter, the economy grew by 0.3 percent.

The monthly fall was triggered by “the partial recovery in car production,” with IT, communications and retail showing strength,” said the ONS’s head of GDP Rob Kent-Smith.

U.K. manufacturing production soared 1.4 percent in May and industrial production recorded the same pace.

The overall trade in goods shortfall narrowed to 11.5 billion pounds in May from a revised deficit of 12.8 billion pounds.

As of 09:00 GMT, the pound traded slightly higher at $1.2480, rebounding from a six-month low of $1.2439 recorded on Tuesday.

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