Statistics released by the Office for National Statistics (ONS) show the economy grew more in May than expected.
The services sector drove half the 0.5% growth in GDP in May, particularly health services and summer holiday bookings.
Although monthly GDP has been volatile, the growth over the three months to May was 0.4% despite a 0.2% decline in April.
Even though there was overall growth, consumers showed signs of spending less due to the cost of living, with a decline in wholesale and retail harming the economy in May.
Kitty Usher, chief economist at the Institute of Directors, said the growth is reassuring for business leaders in the UK.
"Although consumer-facing services are still below their pre-pandemic levels, it's important to remember that this category includes commuter travel so will have been permanently affected by the shift to home-working," Usher said.
"And while many people are undoubtedly feeling the pressure on household bills, the much-publicised weakening in retail sales is also partly offset by consumers switching back to spending on the separate category of tourism travel.
"Overall, there's nothing in this data that will prevent the Bank of England from continuing to raise interest rates when it meets over the summer."
Ask us about your business.
