Thursday 12th August 2021 - 07:17 (BST)
Initial estimates released by the Office for National Statistics (ONS) have indicated the UK economy grew 4.8% over the second quarter of 2021 as activity and demand rebounded following the easing of coronavirus restrictions. This was in stark contrast to the 1.6% contraction in the previous three-month period but still leaves GDP 4.4% below its pre-crisis peak.
Household consumption jumped 7.3% (vs -4.6% in Q1) and public spending advanced 6.1% (vs 1.5% in Q1). Meanwhile, fixed investment continued to contract (-0.5% vs -1.7%) despite an increase in business investment, and net trade contributed negatively to the GDP as imports rose more than exports.
In output terms, the largest contributors to this increase were from wholesale and retail trade, accommodation and food service activities, and education.
The news follows a return to growth for a majority of the worlds largest economies over the second quarter of the year, including the US and EU, with the latest numbers placing the UK as the fastest expanding within the G7.
UK Chancellor Rishi Sunak also expressed his optimism following the readings; “Today’s figures show that our economy is on the mend showing strong signs of recovery, thanks to our Plan for Jobs and successful vaccine programme. 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.”
