The UK gross domestic product (GDP) is forecasted to have increased by 4.8% in Q2 2021, attributable to the easing of Covid-19 restrictions.
Source: Office for National Statistics
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The growth pattern had mixed results, with a 2.2% jump of growth in April cooling sharply to only 0.6% in May, before accelerating over 1.0% in June.
The growth rate was driven by the reopening of the economy after lockdown. Consumer expenditure increased by 7.3%, more than offsetting the weakness of the previous two quarters.
Wage growth remained sluggish, despite reports of challenges to fill vacancies, with the ONS reporting an employee compensation increase of 1.7%.
Services, production, and construction output all increased in Quarter 2 as COVID-19 restrictions continued to ease to varying levels in England, Scotland and Wales.
The UK experienced the largest improvement in real GDP among EU’s biggest economies in Q2, reflecting the timing of tightening and easing of public health restrictions in the first half of 2021.