UK economy grew 6.6% in July as recovery continues slowly

A woman wearing a surgical mask walks behind the Royal Exchange in the financial district of the capital on March 11, 2020 in London, England.

Richard Baker | In pictures via Getty Images

The UK economy grew 6.6% on a monthly basis in July, according to preliminary estimates published on Friday as the economy seeks to recover from a sharp decline due to coronovirus-induced lockdown measures.

The July projected growth in gross domestic product (GDP) was roughly in line with expectations, according to economists provided by Reuters a monthly expansion of 6.7% was expected, and 8.7% growth in June and 2.4% growth in May. In April, after a record 20% increase.

Friday’s data from the Office for National Statistics (ONS) saw a drop of 11.7% compared to the same period last year, slightly lower than the 11.4% contraction expected.

ONS Director of Economic Statistics Darren Morgan said in a statement on Friday, “Although it has steadily moved towards recovery, the UK economy has lost almost half of GDP since the onset of the epidemic.”

UK GDP in July was 18.6% higher than its April 2020, but 11.7% below the epidemic level seen in February.

UK economist at Capital Economics Thomas Pugh said July growth slowed slightly from the previous month, yet indicated that there would be a record-breaking positive growth rate in the second quarter, followed by a record-breaking negative growth rate of GDP in the third. . UK GDP decreased by 20.4% in the second quarter of 2020.

“However, July was probably the last of the big moves in activity and a full recovery will probably not be achieved until 2022, which is why we think the Bank of England will still expand QE (quantitative easing) by another pound.” 250 billion in total, ”Pugh estimated.

Emerging from the lockout measures in the country and the reopening of pubs and restaurants in recent months meant that the housing and food services sector activity grew by 140.8% month-on-month in July, expanding 6.1% in total services production. Happened.