UK recovery continues with latest growth figures

By GENN

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The UK recorded growth of 6.6% in July according to figures from the Office for National Statistics as the economy keeps moving into recovery. That 6.6% figure in part was made up of service sector growth and an expansion in production which was up 17.6%.

Reacting to the figures Chancellor Rishi Sunak said, “today’s figures are welcome” and that “I know that many people are rightly worried about the coming months or have already had their job or incomes affected.”

The momentum could be carried into the coming months according to Samuel Tombs, chief UK economist at Pantheon Macroeconomics. Tombs said that August and September could be, “assisted by far greater than usual numbers of people staying in the UK during the summer holiday season” and “the full reopening of schools”. He went on, “thereafter, the recovery likely will stall if, as looks likely, new Covid-19 infections continue to rise.” Tombs said that would keep “people working from home and avoiding consuming services that require close human contact”.

Though these numbers are positive there is still cause for caution according to Tej Parikh, chief economist at the Institute of Directors. He said, “the economy continued its rebound in July, but the hard part is still to come. The recovery will start to hit speed bumps into the end of the year. Local lockdowns and new restrictions heap uncertainty on businesses, and demand remains limited in many areas.”

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