UK gross domestic product (GDP) is estimated to have increased by 4.8 per cent in the second quarter (Q2) of this year following the easing of COVID-19 restrictions. The output in services, production and construction increased over the quarter, with the largest contributors being from wholesale and retail trade, accommodation and food service activities and education.
Monthly estimates published recently by the UK Office of National Statistics (ONS) show that GDP increased across all three months at 2.2 per cent in April, 0.6 per cent in May and 1.0 per cent in June 2021.UK gross domestic product is estimated to have increased by 4.8 per cent in the second quarter 2021 following the easing of COVID-19 restrictions. The output in services, production and construction increased over the quarter, with the largest contributors being from wholesale and retail trade, accommodation and food service activities and education.#
The level of GDP is now 4.4 per cent below where it was before the pandemic in Q4 2019.
In Q2 2021, there were increases in nearly all main components of expenditure apart from trade, with the largest contribution from household consumption, which contributed 4.1 percentage points to the 4.8 per cent increase following the easing of coronavirus restrictions in Q2 2021 compared with Q1this year.
Nominal GDP rose by 3.6 per cent in Q2 2021. Services, production, and construction output all increased in Q2 2021 as pandemic restrictions continued to ease to varying degrees in England, Scotland and Wales.
There was an increase in services output of 5.7 per cent in Q2 2021, having contracted by 2.1 per cent in Q1. Services output is now 3.5 per cent below Q4 2019 levels.
Production output rose by 0.5 per cent in Q2 2021, following a fall of 0.5 per cent in the previous quarter, and remains 3.3 per cent below its pre-coronavirus pandemic level. The increase in production output in Q2 was driven mainly by a 1.8 per cent rise in manufacturing, in particular that of food products, beverages and tobacco, and machinery and equipment.
There was a fall in the output of the manufacture of transport equipment, which was particularly affected by microchips shortages.
In Q2 2021, household consumption increased by 7.3 per cent, following a fall of 4.6 per cent in the previous quarter, reflecting the easing of restrictions. In comparison with levels before the coronavirus pandemic, household consumption is now 7 per cent lower than in Q4 2019.
Fibre2Fashion News Desk (DS)
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