THE UK economy grew 0.4% in February as lockdown restrictions remained – but it was still almost 8% below its pre-pandemic peak.
Gross domestic product (GDP) rebounded slightly from January’s fall of 2.2%, according to revised figures by the Office for National Statistics.
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The UK economy grew 0.4% in February as lockdown restrictions remained – but it was still 7.8% below its pre-pandemic peak
It comes after the UK economy bounced back more strongly than first thought in last six months of 2020 – but it was still down by 9.8%.
February’s GDP is 7.8% below the levels seen in February last year, compared with 3.1% below the initial recovery peak in October last year.
Throughout February, the government’s coronavirus restrictions affecting economic activity remained broadly unchanged.
The first major stage out of lockdown for businesses came yesterday as non-essential retail, hairdressers and gyms reopened.
The hospitality industry including pubs and restaurants can now serve customers outdoors – but indoor dining will be off the cards until May 17.
A spokesperson for the ONS said: “The economy showed some improvement in February after large falls seen at the start of the year but remains around 8% below its pre-pandemic level.”
“Wholesalers and retailers both saw sales pick up a little, while manufacturing improved with car producers experiencing a partial recovery from a poor January.
“Construction grew strongly after revised figures showed they had struggled in the last couple of months.
“Exports to the EU recovered significantly from their January fall, though still remain below 2020 levels.
“However, imports from the EU are yet to significantly rebound, with a number of issues hampering trade.”
The latest GDP figures come as UK unemployment hit 1.7million in January with 11,000 more losing jobs.
Around half of UK workers have suffered pay cuts in real terms due to the coronavirus crisis, according to research.
Meanwhile, millions of young workers have received a pay rise of £345 from this month, as the National Living Wage increased.
