The UK economy unexpectedly returned to growth in May, largely fuelled by a boom in holiday bookings and a significant rise in GP appointments.
The ONS said GDP rose by 0.5% in the month, after a revised 0.2% decline in April. Economists had expected zero growth amid fears over the impact of the cost of living crisis. However, if you take a closer look, it's clear some sectors are struggling - consumer-facing services fell by 0.1% on the month, which would indicate the cost of living crisis is beginning to bite.
Nick and Jo also investigate the June insolvency figures. The number of registered company insolvencies fell 7.2% to 1,691 in June 2022, compared to May 2022.
Although June 2022 insolvency figures were still 40% higher than June 2021, and 15% higher than the number registered three years previously (pre-pandemic; 1,467 in June 2019). There were 1,456 Creditors’ Voluntary Liquidations (CVLs) in June, making up the vast bulk of insolvencies. A Creditors’ Voluntary Liquidation is a process that enables Directors to formally close an insolvent company voluntarily.
The fall in corporate insolvencies matches May’s unexpectedly positive GDP figures – however business owners should not be complacent given the ongoing economic pressures which will start to be felt in insolvency numbers in the next few months...