UK economy grows by nearly 7% in July

The UK’s economic recovery continues. However the economy is still smaller than before the start of the pandemic and lockdown.

This graph shows the recent fall in the UK economy compared to recent years.

According the ONS, the UK economy grew;

6.6% in July

8.7% in June

2.4% in May

So recent economic growth has been strong. Unfortunately though, the economy collapsed in the previous months as the Lockdown restrictions hit. In April, the economy shrank by 20% in one month.

This means that overall, the size of the UK economy is still just under 12% smaller than in February 2020.

According to Darren Morgan of the ONS;

“While it has continued steadily on the path towards recovery, the UK economy still has to make up nearly half of the GDP lost since the start of the pandemic.

Education grew strongly as some children returned to school, while pubs, campsites and hairdressers all saw notable improvements. Car sales exceeded pre-crisis levels for the first time with showrooms having a particularly busy time.

“All areas of manufacturing, particularly distillers and car makers, saw improvements, while housebuilding also continued to recover. However, both production and construction remain well below previous levels.”

Want to learn more?

You can read the ONS press release here

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The ONS is the Office for National Statistics, which is the official UK government agency for economic data.