The Office for National Statistics (ONS) said that gross domestic product (GDP) rose by 5.5% from April to June, having been revised up from the initial estimation of 4.8%. This means that GDP was 3.3% below where it was in the last quarter of 2019 before the start of the pandemic, against the 4.4% which had been previously estimated. 

Household spending was the largest driver of the upward GDP revision, which contributed 4 percentage points of the 5.5% increase as lockdown restrictions eased in the spring, allowing outdoor dining and a return to in-person shopping. 

However, although pent-up demand following the early 2021 lockdown saw Brits up their spending, more recent GDP figures suggest a marked slowdown in the growth recovery. According to figures from earlier this month, economic growth eased to 0.1% in July, down from 1.4% in June. Many fear that supply chain problems will continue to add to the slowing recovery.

Deputy national statistician at the ONS, Jonathan Athow, said: “The economy grew more in the second quarter than previously estimated, with the latest data showing health services and the arts performing better than initially thought.

“The revised figures also show households have been saving less in recent years than previously thought. Household saving fell particularly strongly in the latest quarter from the record highs seen during the pandemic, as many people were again able to spend on shopping, eating out and driving their cars.” 

personalloanscom generic 728x90 728x90