• UK GDP arrived at 0.5% MoM in May vs. 0% expected.
• GBP/USD rebounds firmly above 1.1900 on UK GDP big beat.

The UK GDP monthly release showed that the economy rebounded firmly in May, arriving at 0.5% vs. 0% expectations and -0.3% previous.

Meanwhile, the Index of services (May) came in at 0.1% 3M/3M vs. -0.6% estimate and 0.2% prior.

Economists had predicted zero growth in May from April.

Key takeaways via ONS

Health services were a major driver of growth, citing "a large rise in GP appointments".

“Road hauliers also had a busy month, while travel agencies fared well with pent-up demand for holidays.”

Market reaction

The Cable catches a fresh bid and jumps back towards 1.1950 on stronger-than-expected UK growth numbers. The spot is adding 0.29% on the day.

About UK GDP

The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).