THE UK economy‘s bounce back from coronavirus slowed in July despite the removal of all Covid restrictions.
Growth in gross domestic product (GDP) was 0.1% in July compared to 1% in June, according to the Office for National Statistics.
GDP remains 2.1% below the pre-pandemic level recorded in February 2020.
But despite the slow down, July was the sixth consecutive month of GDP growth as restrictions were eased across the country.
Social distancing, capacity limits and face covering rules were removed in pubs, restaurants and shops from July 19.
Production output increased by 1.2% during the month and was the main contributor to GDP growth.
It was boosted by the reopening of an oil field production site, which had been temporarily closed for planned maintenance.
Arts, entertainment and recreation activities also grew by 9.0%.
This reflected the easing of restrictions on social distancing from 19 July, when all social distancing restrictions were lifted.
However, construction contracted for a fourth consecutive month, with output down by 1.6%.
Services output was flat compared to the previous month, and remains 2.1% below its pre-pandemic level.
The UK’s services industry includes the retail sector, the financial sector, the public sector, business administration, leisure and cultural activities.
Meanwhile, consumer-facing services fell by 0.3% in July – its first fall since January 2021 – mainly because of a 2.5% fall in retail sales.
Overall, GDP grew by 3.6% in the three months to July 2021, due to the performance of the services sector as lockdown was lifted.
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