Covid bounceback was better than expected with UK growth revised UP from 4.8 per cent to 5.5 per cent for three months to June – despite fears recovery has now stalled amid supply chain chaos
- ONS has revised growth up from 4.8 per cent to 5.5 per cent in second quarter
- GDP was still 3.3 per cent above its pre-pandemic level at the end of the period
- The recovery is feared to have stalled further since amid the supply chain chaos
The coronavirus bounceback has been better than expected with economic growth for the second quarter revised up sharply today.
UK GDP grew by 5.5 per cent in the three months to June – much faster than the 4.8 per cent previously estimated.
The Office for National Statistics said activity in health services and the arts was higher than originally thought – and households spent more strongly.
Despite the positive news, the economy was still 3.3 per cent smaller than before the pandemic – down from and is believed to have slowed down significantly due to supply chain chaos.
UK GDP grew by 5.5 per cent in the three months to June – much faster than the 4.8 per cent previously estimated
Deputy National Statistician Jonathan Athow said: ‘The economy grew more in the second quarter than previously estimated, with the latest data showing health services and the arts performing better than initially thought.
‘The revised figures also show households have been saving less in recent years than previously thought.
‘Household saving fell particularly strongly in the latest quarter from the record highs seen during the pandemic, as many people were again able to spend on shopping, eating out and driving their cars.’
The biggest driver of the upward GDP revision was household spending, which contributed four percentage points of the 5.5 per cent increase as restrictions eased to allow outdoor dining in April with further restrictions lifted in May.
In the quarterly national accounts, the ONS also revised the first-quarter figure for 2021, estimating the economy now contracted by 1.4 per cent rather than 1.6 per cent.
It added that the economy contracted by a record 9.7 per cent in 2020, having previously estimated a 9.8 per cent decline.
The news will be a boost to Rishi Sunak as he prepares his Budget for the end of October
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