GDP still below pre-Covid levels

ONS figures show that UK gross domestic product (GDP) grew by 0.1% in July and remains 2.1% below its pre-pandemic level. Production output increased by 1.2% in that month and was the main contributor to GDP growth.

Construction contracted for a fourth consecutive month, with output down by 1.6%, and is now 1.8% below its pre-pandemic level. Services output remained broadly flat in July 2021, and remains 2.1% below its pre-pandemic level.

Arts, entertainment and recreation activities grew by 9%, reflecting the easing of restrictions on social distancing. Output in consumer-facing services fell by 0.3%, its first fall since January, mainly because of a 2.5% drop in retail sales.

Commenting on the figures, TUC general secretary Frances O’Grady said: “The recovery is still very uncertain. To protect it, the government must continue supporting workers and businesses in hard-hit industries.

"This should include a permanent short-time working scheme. And at the spending review, the chancellor must bolster demand by making sure all key workers get the proper pay rise they have earned.”

https://www.ons.gov.uk/releases/gdpmonthlyestimateukjuly2021

https://www.tuc.org.uk/news/gdp-chancellor-must-support-recovery-instead-stressing-it-universal-credit-cuts