As consumers control spending, the UK’s economic recovery slows
UK GDP update
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Due to reduced consumer spending in stores and shortages of raw materials hitting the construction industry, the British economic rebound slowed to slow in July.
The National Bureau of Statistics said on Friday that output in July rose 0.1% from the previous month, which was lower than the 1% increase in June and also lower than the 0.6% forecast by economists surveyed by Reuters. Compared with February 2020 before the first coronavirus restriction, the economy is still 2.1% smaller than in 2020.
Andrew Goodwin, chief British economist at Oxford Economics, said: “The recovery is now entering a more difficult phase. There are still many risks in the coming months, including the reduction of government support, and shortages of parts and labor. It is an increasingly serious constraint.” On the activity.
Jonathan Athow, deputy national statistician for economic statistics at the National Bureau of Statistics in the United Kingdom, added: “After a few months of strong economic growth, most of the pandemic’s lost ground was made up, but the overall July There is almost no growth.”
He said that the overall service industry has not grown, and the growth of IT, financial services and outdoor activities may be more fully operational in July, offsetting the sharp decline in retail and legal services.
Although art, entertainment and leisure activities increased by 9% driven by sports clubs, amusement parks and festivals, service output was basically flat in July, reflecting the relaxation of restrictions on social distancing since July 19.
The output of consumer-oriented services fell 0.3% in July, the first decline since January, mainly due to a 2.5% drop in retail sales.
The construction industry contracted for the fourth consecutive month, with output falling 1.6%.
Production increased by 1.2% in July, the main driver of GDP growth, thanks to the reopening of an oil field production base that has been closed for maintenance.