UK Economy Rebounds 4.8% as Indoor Hospitality, Non-Essential Retail Reopen

Source: Office for National Statistics

The UK economy rebounded in the second quarter, driven mainly by the growth in services and hospitality as quarantine restrictions were eased during the period.

• The gross domestic product expanded by 4.8% in the second quarter. This compares with -1.6% in the first quarter, and -19.5% in the same quarter last year.
• The latest reading is now 4.4% lower than the level seen before the COVID-19 pandemic in the last quarter of 2019.
• Services output grew 5.7% in the quarter, following the 2.1% contraction in the previous quarter, as indoor hospitality and non-essential retail were reopened.
• The biggest growth was recorded in accommodation and food service activities which soared 87.8%, while wholesale and retail trade grew by 12.8%.
• Education output climbed 19.4% to reflect the reopening of schools as in-school attendance increased.
• Production output posted a 0.5% gain, while construction output increased by 3.3%.
• All main components of expenditure climbed, apart from trade.