The UK economy grew for the fourth month in a row in May and was up 0.8% as coronavirus restrictions continued to ease.
However, gross domestic product (GDP) - a measure of the size of the economy - still remains 3.1% below its pre-pandemic levels in February 2020, according to the Office for National Statistics.
The growth in May was also below the 1.5% increase for the month that analysts had predicted, and was less than the 2% rise in April.
GDP grew as pubs and restaurants were finally allowed to welcome back customers for inside dining, having previous reopened for outdoor service only in April.
Hotel stays for leisure purposes were also allowed again in May.
ONS analysts say accommodation and food service activities grew by a huge 37.1% over the month due to the easing of these restrictions.
But the manufacturing of transport equipment fell by 16.5% - the largest fall since April last year - mainly because the global shortage of microchips hit car production.
Jaguar Land Rover suspended work at two plants in April this year due to the shortage, while Honda said the dip in supply has led to production delays.
Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: "The economy grew for the fourth consecutive month, albeit at a slower pace than seen recently, but remains around 3% below its pre-pandemic peak.
"Pubs and restaurants, who were again able to welcome indoor guests, were responsible for the vast majority of the growth seen in May. Hotels also saw a marked recovery as restrictions lifted."
Chancellor Rishi Sunak said: “It’s great to see people back out and about thanks to the success of the vaccine rollout, and to see that reflected in today’s figures for economic growth.
“Our unprecedented package of support – including business loans, the furlough scheme and a reduced rate of VAT for the hospitality and tourism sectors - has protected millions of jobs and helped businesses survive the pandemic.
“The Government is continuing to support the recovery, with the furlough scheme in place until September and schemes like Restart helping people who have sadly lost their jobs get back into work.”
