UK economy: strong growth for third month in a row as restrictions ease

The UK economy grew by 2.3 per cent in April as Covid-19 restrictions eased,the fastest monthly growth since July last year.

The Office for National Statistics (ONS) said UK GDP rose for the third consecutive month as shoppers spent more on the high street and bought more cars and caravans.

The rise in GDP was boosted by a month-on-month growth of 3.4 per cent in services, 9.2 per in retail spending and 11.2 per cent in education output as more pupils returned to onsite lessons.

However, manufacturing output fell by 0.3 per cent while construction saw a 2 per cent drop in output.

Jonathan Athow, the deputy national statistician for economic statistics at the ONS, said: “Strong growth in retail spending, increased car and caravan purchases, schools being open for the full month and the beginning of the reopening of hospitality all boosted the economy in April.”

“The economy is now less than 4 per cent below its pre-pandemic peak overall, however, declines in the often-erratic pharmaceutical industry, shutdowns in many car plants and large-scale oil field maintenance pulled back the headline rate of growth”.

Overall, UK GDP grew by 1.5 per cent in the three months to April 2021, compared with the previous three months. On an annual basis, the UK economy is now 27.6 per cent larger than in April 2020 – at the height of the pandemic – a record annual jump.

The figures bolster the Bank of England’s forecast that the UK could record its fastest annual growth since the 1940s this year, at around 7.25 per cent.

Chancellor Rishi Sunak said the ONS figures were a promising sign that the economy is beginning to recover.

He claimed: “With more than a million people coming off furlough across March and April and the number of employees in work rising, it is clear that our Plan for Jobs is working.”

The furlough scheme will remain in place until September to protect as many jobs as possible, Sunak said.