Sunday, 24 Oct, 2021

UK economy grew 1% in June despite Freedom Day delay

THE UK economy grew by 1% in June despite the delay to easing lockdown restrictions.The month-long delay to lifting Covid rules didn’t prevent the..


THE UK economy grew by 1% in June despite the delay to easing lockdown restrictions.

The month-long delay to lifting Covid rules didn’t prevent the economy from continuing its bounce back from the pandemic.

The UK economy has continued its bounce back from the coronavirus pandemic

Growth in gross domestic product was up slightly compared to May, when it grew by 0.6%, according to the Office for National Statistics.

The ONS had estimated 0.8% growth in May, but that has since been revised down to 0.6%.

However, growth has slowed since April and March, when the economy expanded 2.3% and 2.1% respectively.

UK GDP remains 2.2% down compared to the pre-pandemic level recorded in February 2020.

Covid restrictions were due to be lifted from June 21, but “Freedom Day” was pushed back until July 19 as the spread of the virus accelerated.

That meant that social distancing, capacity limits and face coverings were required in pubs, restaurants and shops for an extra month.

But the reopening of indoor dining in pubs and restaurants on May 17 helped to boost economic growth.

The service sector was one of the main contributors to economic recovery in June, growing 1.5% overall as hospitality venues opened indoor areas.

Pubs and restaurants boosted GDP growth as they soared by 10.1% in June.

Health activities also contributed to growth, as Brits began making GP appointments again after avoiding putting extra pressure on the NHS since the pandemic began.

Production output fell 0.7% in June, due to the planned temporary closures of oil field sites for maintenance.

The construction sector also contracted for the third month in a row, with output down 1.3% in June – 0.3% below its pre-pandemic level.

Overall, GDP grew by 4.8% in the three months to June 2021.

During that time, Retail sales grew strongly, pupil attendance increased as schools reopened from March 2021, and pubs and restaurants resumed trading.

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