UK economy grew by 6.6 per cent in July but coronavirus rebound slows

PRACTICAL WORLD TRUE NEWS MAGAZINE by PRATICA RADIO


The UK economy grew by almost seven per cent in July but Britain's rebound from the coronavirus crisis is slowing down with GDP still almost 12 per cent below pre-lockdown levels.

Chancellor Rishi Sunak


The UK economy grew by almost seven per cent in July but Britain's rebound from the coronavirus crisis is slowing down with GDP still almost 12 per cent below pre-lockdown levels. 

The Office for National Statistics announced this morning that UK GDP had grown by 6.6 per cent in July - the third consecutive month of growth.

However, the recovery was slightly worse than expected after a consensus of analysts had predicted a 6.8 per cent month-to-month increase while overall GDP remains down 11.7 per cent overall.

Hopes of a swift recovery from the crisis also took a hit as the speed of the bounce back slowed following 8.7 per cent growth which was recorded in June.          

The ONS said the UK has now clawed back around half of the output it lost after the pandemic fully hit the economy.

The statistics body reported growth across all of the major sectors of the British economy, with particularly strong growth in the construction industry.

Construction output jumped by 17.6 per cent in July, driven by an increase in new housing, but still remained 11.6 per cent below the level reported in February.

Meanwhile, the production sector reported output seven per cent below pre-Covid levels after it grew by 5.2 per cent in July following an increase in manufacturing.

The services sector increased by 6.1 per cent in July, below analysts' predictions, after restaurants, pubs and cafes were given the green light to welcome customers again. 

Darren Morgan, the director of economic statistics at the ONS, said: 'While it has continued steadily on the path towards recovery, the UK economy still has to make up nearly half of the GDP lost since the start of the pandemic.

'Education grew strongly as some children returned to school, while pubs, campsites and hairdressers all saw notable improvements.


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