The UK economy grew by 4.8% in the second quarter of 2021, and rose in June to 1% as lockdown restrictions were eased, the Office for National Statistics has said
There have been increases in services, production and construction output over the quarter.
In output terms, the largest contributors to this increase were from wholesale and retail trade, accommodation and food service activities, and education.
The level of GDP is now 4.4% below where it was pre-coronavirus pandemic.
Alpesh Paleja, CBI Lead Economist, said:
“Growth bounced back over the second quarter as restrictions on activity were gradually lifted, underscoring that tackling the pandemic goes hand-in-hand with supporting economic growth.
“Yet challenges to the recovery are emerging. Several supply bottlenecks have likely taken the edge off growth over the summer: a shortage of raw materials and semiconductors, continuing global supply chain disruption and staffing shortages. In the near-term, every effort must be made to safeguard the UK recovery.
“Meanwhile, pre-COVID-19 issues have not disappeared. Boosting business investment and poor productivity are key to securing future prosperity and competitiveness. As a first step, the Government must make progress on reforming the UK’s outdated business rates regime, incentivising capital spending in several of the Government’s key ambitions, including levelling up and the transition to net zero.”
