UK growth slows as computer chip shortage hits carmaking

GDP expanded by 0.8% in May, behind the 1.5% forecast, as construction sector also shrank

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Britain's economic recovery stumbled in May when growth slowed to 0.8% after a boost from the reopening of indoor hospitality was offset by a contraction in building work and a slump in car production.

It was the fourth consecutive month of GDP growth, and followed 2% growth in April, but the slowdown in May was sharper than expected after City economists had forecast a 1.5% increase.

The global shortage in semiconductors, the microchips that are an essential component in every electronic device in the world, started as a temporary delay in supplies as chip factories shut down when the coronavirus pandemic first hit.