UK economy grew after increasing dining outs and campings
In August, as more people went on holiday, to music festivals, and dined out, the United Kingdom’s economy started to grow by 0.5%.
The ONS (Office for National Statistics) said the services sector contributed most to the country’s economic growth in the whole month after lifting all Covid restrictions in England.
Reports said that sports clubs, festivals, and amusement parks boosted entertainment, arts, and recreation by increasing around 9%. It simultaneously increased the demand for campsites and hotels.
The country eased restrictions on social distancing from the end of July.
The Office for National Statistics said that the economy is now 0.9% smaller than before the crisis.
Director of economic statistics at the ONS, Darren Morgan, said that the economy started to grow mainly in August as restaurants, bars, and festivals profited from the first whole month without restrictions. However, he added that slightly more vulnerable data from several industries represent the economic fall in July. According to the ONS, economic growth declined by 0.2% in July. However, accommodation and food services activities increased by around 10.5% in August, when hotels and campsites registered 22.9% growth.
The transportation industry also recorded grew in August after easing measures and restrictions. However, the sector is still trading way much below pre-pandemic levels.
Associate director at Fidelity International, Emma-Lou Montgomery, said that the real growth can not occur until the following year.
She also said that the supply chain interruption risks discouraging customer confidence.
Ms. Montgomery said that the situation would be crucial until Christmas. However, there will be little will to spend with households facing rises in price for everyday items, including the gas bill and the food shops. The ONS said that this situation reflects the recent challenges the construction industry faces.
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