The UK economy grew by 1.8% in May, it was revealed today – which is good news as it shows recovery is on the horizon as the country heads towards a new normal.

But a new graph has put this into sharp context, showing that in comparison with the huge drop in gross domestic product (GDP) during the pandemic, this slight growth is fairly insignificant.

The first graph below, released by think tank the Resolution Foundation, shows 1.8% growth is the largest month-on-month rise in seven years – with a deep v-shaped tick which at first glance appears to show the economy may have bounced back quickly.

But when the figures are based on the monthly index going back to 2011 in the second graph below, rather than looking at month-on-month growth, there is only a tiny v-shaped uptick showing the recovery is in reality much smaller.

Despite a huge month-on-month growth, the Office for National Statistics (ONS) says the UK economy still remains a quarter below pre-pandemic levels.

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Record falls in March and April – when Britain was in full lockdown – show output was 24.5% lower compared with February before the crisis struck.

But slight growth began as coronavirus lockdown restrictions began to be lifted in May and manufacturing and housebuilding showed signs of recovery.

Further growth is expected from June as non-essential shops, outdoor markets and car dealerships were reopened.

The 1.8% growth however is weaker than what experts expected, after predicting a month-on-month rise of 5%.

The rolling three-month growth rate has continued to fall and as of May, was at an all-time low of -19.1%.

Jonathan Athow, ONS deputy national statistician, said: ‘Manufacturing and house-building showed signs of recovery as some businesses saw staff return to work.

‘Despite this, the economy was still a quarter smaller in May than in February, before the full effects of the pandemic struck.

‘In the important services sector we saw some pick-up in retail, which saw record online sales.

‘However, with lockdown restrictions remaining in place, many other services remained in the doldrums, with a number of areas seeing further declines.’

Alpesh Paleja, lead economist at the CBI business group, said: ‘The latest data sheds further light on just how much the economy has been affected by lockdown.

‘While recent indicators suggest we have turned a corner, it’s clear many sectors are still in acute distress.

‘Sadly, the legacies of this crisis will likely be felt for some time.

‘The Chancellor’s summer statement was an important step forward, but many viable firms remain in danger as a result of reduced cash flow and a lack of consumer demand.’

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