May GDP growth signal better times ahead - at last

Professor Joe Nellis, MHA’s Economic Advisor, speaks with Accountancy Daily on today’s GDP data;

Today’s data shows that GDP rose by 0.4% in May, which suggests that the economy is set to move into a higher gear after flatlining for a couple of years. With Q1 having started stronger than expected with growth of 0.7%, the second quarter of the year looks like continuing along the same trend, despite GDP remaining flat in April.

"The new government will be breathing a great sigh of relief that the UK economy is at last showing signs of life again. We believe there is now room for improved optimism for later in the year. Corporates and households were holding their breath ahead of the Election, but now that is out of the way, we can expect to see modest but more sustainable growth going forward.

“Falling inflation and a cut in interest rates that is finally in sight will further boost positive sentiment among the public while the Chancellor’s announcement on the new National Wealth Fund will have come as welcome news to the corporate sector, as it is expected to turbocharge investment."