UK May monthly GDP +0.1% vs +0.1% m/m expected

UK May monthly GDP rose 0.1% month over month, matching expectations and reversing the prior month’s 0.1% decline. The data suggest the UK economy is still growing, but only marginally, with a mixed sector breakdown. Services, the largest part of the economy, expanded 0.3%, helping offset weakness elsewhere. Industrial output fell 0.5% and construction dropped 0.8%, both worse than forecast, while manufacturing posted a surprise 0.1% increase. For markets, the figure is likely to be seen as broadly neutral for the UK 100, since headline growth met expectations and does not materially change the outlook for UK policy or earnings conditions. However, the softer industrial and construction numbers may cap optimism about the durability of the recovery.