Economic recovery stalls in July

The UK's economic recovery slowed down significantly in July 2021 after five months of consecutive growth with GDP increasing by just 0.1%, data from the Office for National Statistics (ONS) shows.

GDP grew by 3.6% in the three months to July 2021 but remains 2.1% below its pre-coronavirus pandemic level recorded in February 2020.

Production output was the main contributor to GDP growth, growing by 1.2% in July 2021.

The construction sector contracted for a fourth month in a row, however. The sector shrank by 1.6% and is now 1.8% below its pre-pandemic level.

The services sector remained flat over the same period, corresponding to a 2.5% drop in retail sales.

Despite the sluggish growth seen in July, Chancellor Rishi Sunak said:

"Our recovery is well underway thanks to the success of the vaccination rollout and the roadmap."

Others aren't convinced, with Krishan Shah, researcher at the Resolution Foundation, commenting:

"(The) figures are a clear sign that the (economic) recovery is not complete. Policy makers need to continue to support the economy as we navigate the complexities of the pandemic and the impact of the end of furlough."

Talk to us about your business.

Bland Baker Blog

Read our latest posts

Publications

Download a copy of our Insider Newsletter or Active Practice Update

21 Lodge Lane
Grays
Essex
RM17 5RY

Tel: 01375 383888
Fax: 01375 391672
E-mail: info@blandbaker.co.uk