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Surge in summer holiday bookings helps unexpected economic growth

A surge in summer holiday bookings helped contribute to the UK economy unexpectedly returning to growth in May.

The Office for National Statistics said gross domestic product (GDP) rose by 0.5% on the month, after a revised 0.2% decline in April.

A monthly contraction of 5.3% in sports activities and amusement and recreation activities was partially offset by growth in travel agency, tour operator and other reservation services and related activities, “the largest positive contributor in consumer-facing services,” which increased by 11%. 

The ONS added: “Anecdotal evidence received from the monthly business survey for services suggested increased confidence in holiday booking following the end of Covid restrictions.”

The latest snapshot came despite fears over the impact on the economy from the rising cost of living.

ONS director of economic statistics Darren Morgan said the UK economy had “rebounded” with growth across the main sectors.

“Health was the biggest driver with many more people seeing GPs, despite test and trace and the vaccination programmes winding down,” he told the BBC.

He added that road haulage also had a “busy” May, while travel agencies saw a jump in demand as people booked summer holidays.

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