The UK economy grew 2.1 per cent in August according to data from the Office for National Statistics (ONS).
It was the fourth consecutive month of growth, after the economy took a serious hit during the depths of the Covid-19 pandemic.
But it is less than half of what experts had expected, and a major slowdown since July despite the Government’s Eat out scheme which ran during the month
ONS deputy national statistician for economic statistics Jonathan Athow said: “The economy continued to recover in August but by less than in recent months.
“There was strong growth in restaurants and accommodation due to the easing of lockdown rules, the Eat Out To Help Out scheme, and people choosing summer ‘staycations’.
He added: “However, many other parts of the service sector recorded muted growth.
“Construction also continued its recovery, with a significant boost from housebuilding.
“There was limited growth in manufacturing, which remains down on its pre-pandemic level, with car and aircraft production still much lower than the start of the year.”
Rain Newton-Smith, CBI Chief Economist, said:
“It’s good to see that the economy continued to make progress in clawing back from the decline felt earlier this year. Yet a long-lasting recovery is by no means assured. While necessary, the combination of restrictions re-introduced in September and rising infections will be weighing on already fragile business and consumer confidence.
“Getting growth onto a firmer footing will rely on bringing infections under control. Imminent new restrictions must go hand-in-hand with further business support, especially for those harder hit regions and sectors such as aviation, wider transport and hospitality.
“Securing a deal with the EU also remains crucial to securing a sustainable economic recovery. Common sense and compromise must drive politicians on both sides to protect both goods and services trade between the UK and the EU.”
