UK economic growth slowed again in May, although more economic activity reopened following the easing of sanctions in the country.
According to a report published by the Office for National Statistics (ONS), the UK economy was reported to grow 0.8% in May compared to a revised 2.0% in the previous month.
This reading turned out to cause market frustration which expects growth of 1.5% to be recorded in May.
This keeps the UK’s Gross Domestic Product (GDP) at 3.1% below the pre-pandemic levels seen in February last year.
This disappointing reading was seen as less impactful on the pound, seeing the currency trade around $ 1.3785 against the US dollar, after being impacted by risky sentiment and the safe-haven currency’s rise.
Against the euro, the pound slumped to 85.94 pence, after experiencing its worst day in two months on Thursday as the European Central Bank (ECB) set a new inflation target.
The rapidly spreading Delta coronavirus variant is seen to threaten the UK’s plans to come out of sanctions on July 19 and increase risks to the country’s economic recovery.
