Britain’s economy expanded at a faster pace than expected in a boost to the incoming Labour government. Gross domestic product (GDP) grew by 0.4pc in May, according to the Office for National Statistics.

Analysts had predicted the economy would grow by 0.2pc after seeing no growth in April. 

The ONS said the economy expanded by 0.4pc in March 2024. 

It comes after statisticians said in May that the economy was “going gangbusters” after recording a sharp uptick in growth during the first three months of the year.

 GDP expanded by 0.7pc in the three months to March, taking Britain out of recession at the end of 2023. 

Chancellor Rachel Reeves this week set out the Government’s “national mission” to raise growth, which she kicked off with a new housebuilding drive and setting aside £7.3bn for green investments.