Get all your news in one place.
100's of premium titles.
One app.
Start reading
Wales Online
Wales Online
National
August Graham, PA & Brett Gibbons

Pubs reopening and hospitality bounce back helps UK economy grow by 4.8 per cent

The UK economy grew by 4.8% in the second quarter of 2021 as Covid rules eased amid a bounce back from the hospitality sector, the Office for National Statistics has said.

The country’s gross domestic product (GDP) increased by a further 1% in June, creating five consecutive months of growth.

Deputy national statistician for economic statistics Jonathan Athow said: “The UK economy has continued to rebound strongly, with hospitality benefiting from the first full month of indoor dining, while spending on advertising was boosted by the reopening of many services.

“GDP is still around two percentage points below its pre-pandemic peak.”

Energy usage dropped as summer arrived in the UK, the ONS said.

Economists at Pantheon Macroeconomics had expected GDP to grow by 0.6% in June, and 4.7% across the quarter.

The Bank of England, meanwhile, had predicted growth of 5% across the quarter.

However, the surge of the Covid-19 Delta variant and the boom in the number of people self-isolating undermined some of this growth.

Nevertheless, the data marks a major improvement from earlier in the year. In the first quarter the economy contracted by 1.6% as it battled with prolonged lockdowns.

That data covered the period to the end of March, so did not include the reopening of outdoor hospitality in April and indoor hospitality a month later.

Chancellor Rishi Sunak said: “I know there are still challenges to overcome, but I feel confident in the strength of the UK economy and the resilience of the British people.”

For more stories from where you live, visit InYourArea.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.