UK economy continues recovery in July

Technology

The UK economy grew by 6.6% in July, according to the Office for National Statistics (ONS), but it said output remains far below pre-pandemic levels.

It is the third month in a row that the economy has expanded.

But the ONS said that the UK “has still only recovered just over half of the lost output caused by the coronavirus”.

Hairdressers and pubs contributed to growth after both industries were allowed to reopen in July.

However, the UK’s economy is still 11.7% smaller than it was in February and growth in July was smaller than the 8.7% expansion seen in June.

Up, up, but not away. The UK economy continued a sharp recovery from lockdown in July, growing by a bumper 6.6% in the month. But the rate of recovery was a little slower than in June, raising some concerns about the ongoing strength of the bounce back.

The economy is still nearly 12% smaller than before the pandemic crisis, and has recovered just over half of the lost output during the shutdowns.

While the third quarter is on course to see a record number for growth and the official end of recession, fears remain that the recovery could peter out.

Business groups continue to push for extensions to government support packages that are due to close. The figures in July reflected the partial reopening of retail, manufacturing, and some public sector activities such as schools.

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