{"text":[[{"start":6.55,"text":"The UK economy grew by 0.1 per cent in May, proving resilient in the face of a surge in energy prices but underlining the challenge facing Andy Burnham as he prepares to take over as prime minister. "}],[{"start":19.4,"text":"The month-on-month expansion was in line with the forecast of economists polled by Reuters and followed a contraction of 0.1 per cent in April, the Office for National Statistics said on Thursday."}],[{"start":31.95,"text":"In the three months to May, a less volatile measure, the economy grew 0.7 per cent, compared with the three months to February, slowing from an upwardly revised 0.8 per cent pace in the three months to April. "}],[{"start":44.95,"text":"The figures come as Burnham prepares to succeed Sir Keir Starmer as prime minister next week, taking over against a backdrop of subdued growth and pressure on the public finances."}],[{"start":55.650000000000006,"text":"Paul Dales, chief UK economist at the consultancy Capital Economics, said May’s modest expansion was “not a bad welcome gift” for the incoming prime minister, suggesting “that the economy has been more resilient to the rise in energy prices since the Iran war started than we thought”."}],[{"start":73.60000000000001,"text":"He added that Burnham “shouldn’t get used to it”, noting that “as inflation has yet to peak, the drag on households’ real incomes has yet to peak too”."}],[{"start":83.80000000000001,"text":"The closure of the Strait of Hormuz in the early days of the Middle East conflict sent energy prices soaring, forcing the Bank of England to ditch plans to cut interest rates and dashing Starmer’s hopes for a sustained pick-up in growth."}],[{"start":97.9,"text":"Oil prices have fallen back from the $126 peak touched in April but have climbed sharply this month as the US and Iran’s battle for control of the strait threatens a return to full-blown war."}],[{"start":111.25,"text":"Traders are expecting the BoE’s Monetary Policy Committee to raise interest rates by a quarter point to 4 per cent by November, according to levels implied by swaps markets. Before the recent rebound in oil prices, such a move was not priced in until the first half of next year."}],[{"start":126.4,"text":"The pound was little changed after the GDP figures at $1.353."}],[{"start":132.05,"text":"Martin Beck, chief economist at WPI Strategy, said the economy had “absorbed the initial shock from the Iran conflict better than many feared”, with the immediate outlook “less gloomy than it appeared a few weeks ago”."}],[{"start":144.55,"text":"May’s expansion was driven by the dominant services sector, where output rose by 0.3 per cent. Output in the construction sector fell by 0.8 per cent and the production sector shrank by 0.5 per cent. "}],[{"start":158.55,"text":"In the three months to May, services grew by 0.7 per cent, with particular strength in computer programming and advertising, said Liz McKeown, ONS director of economic statistics."}],[{"start":170,"text":"Professional services also registered solid growth over the three-month period. Consumer-facing services expanded by 0.5 per cent, led by a strong performance from the hotel industry."}],[{"start":180.9,"text":"The manufacturing sector grew by 1.6 per cent over the three months, driven in part by businesses bringing forward activity in an effort to get ahead of even higher energy and raw material costs."}],[{"start":192.4,"text":"May’s growth was boosted by research and development in medical sciences, a sector prone to volatility. "}],[{"start":199.15,"text":"A Treasury spokesperson said the government had put the UK “in a much stronger position than two years ago” with growth this year set to outstrip other European G7 countries and borrowing to undershoot the G7 average. "}],[{"start":212.35,"text":"Ben Caswell, senior economist at the National Institute of Economic and Social Research, said: “With volatile energy prices, higher inflation on the horizon, and fragile public finances, the new prime minister inherits a stagflationary economy and will have just under three years to turn around a tough economic situation.”"}],[{"start":234,"text":"Additional reporting by Emily Herbert"}],[{"start":243.15,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784193116_9170.mp3"}