May GDP growth 'positive news'
The latest Gross Domestic Product (GDP) monthly estimates from the Office for National Statistics (ONS), released this week, showed the economy expanded by 0.4% in May, rebounding from zero growth in April.
In the three months to May 2024, the economy grew by 0.9% compared with the previous three months, which the ONS said was the strongest three-monthly growth since January 2022.
Sustained growth
British Beer & Pub Association (BBPA) chief executive Emma McClarkin said: “Last month’s economic boost of 0.4% growth will be welcomed across the beer and pub sector as an indication that the economy is returning to health and growth is beginning to become sustained.
“The last month has been a great opportunity for brewers and pubs as England have progressed through the Euros with noticeable increases in trade on days when England was playing.
“But as things return to normal, the costs of doing business remain the same and the industry will look ahead to what the new Government can do to address this, especially with regard to cutting beer duty and lowering business rates.”
Consumer facing services grew 0.5% during this period, while accommodation and food service activities grew 2.4% during the period.
Positive news
The subsector saw growth in both industries, with accommodation and food and beverage service activities growing by 4.6% and 1.5% respectively.
UKHospitality (UKH) chief executive Kate Nicholls said: “The hospitality industry is projected to grow 6% each year with the right economic conditions, so these latest figures from the ONS, showing stronger than average growth in May, are positive news.
“While a growing economy is crucial to increasing consumer confidence, we also need to see the cost burden on the sector reduced if we want to create the conditions that will enable us to play our full part in serving Britain.
“The new Government committed to business rates reform in its manifesto and we need to see this addressed within the first 100 days in power if we are to be able to act quickly, invest locally and create new jobs.”
