UK GDP rose 0.8% in May
Despite new easing of lockdown measures, the UK saw a slower growth in May. That recovery lost momentum.
The National Bureau of Statistics (ONS) revealed that UK GDP rose 0.8% in May, well below 1.5% forecast.
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The May figures are below the 2% growth achieved in April as restrictions on essential retailers eased.
The economy is 3.1% below pre-pandemic levels despite seeing fourth consecutive month of growth.
GDP rose 0.8% in May, but 3.1% below its pre-pandemic peak.
▪§Service increased by 0.9% (3.4% below peak)
▪γManufacturers decreased by 0.1% (3.0% below peak)
▪ 0.8% (0.3% above the peak) has fallen here
https://t.co/ncesktksqs pic.twitter.com/r3j0ak6x6g
– National Bureau of Statistics (ONS) (@ons) July 9, 2021
Jonathan Athow’s Associate National Statistician of ONS said:
“Pubs and restaurants that were able to welcome indoor guests again were responsible for most of the growth seen in May. The hotel also saw a significant recovery as restrictions were lifted.”
Ian Warwick, managing partner at Deepbridge Capital, commented on the 0.8% drop in UK GDP. However, we are clearly moving in the right direction and as we focus on economic recovery, it is very important that scale-up businesses are supported, especially in high-growth sectors such as digital technology and life sciences. Because they are at the very heart of economic growth as we create the perfect economy for the 21st century. ”
“Government initiatives such as the Enterprise Investment Scheme (EIS) have become more important than ever to help entrepreneurs and innovators raise the funds they need, but to support the UK to private investors. It also offers tax incentives to develop private equity portfolios. As EIS funds reached record funding levels in 2020/21, there is a significant demand from investors and financial advisors. Yes, it is clear that we will invest in early stage UK companies that we believe are at the forefront of economic recovery,” Woods added.
