Has the V-shaped recovery stalled? UK economy grew by just 2.1 per cent in August as pace of bounce back slowed despite Rishi Sunak’s Eat Out to Help Out scheme
- The UK economy grew by just 2.1 per cent in August as the bounce back slowed
- Analysts had been expecting growth of 4.6 per cent after 6.4 per cent in July
- Disappointing number was recorded despite Eat Out to Help Out scheme
The UK economy grew by just 2.1 per cent in August as the economic recovery from the coronavirus crisis stalled despite Rishi Sunak’s Eat Out to Help Out scheme.
Data published this morning by the Office for National Statistics showed that the rate of growth was much lower than the 4.6 per cent which analysts were expecting.
The 2.1 per cent figure is also massively down on the 6.4 per cent expansion recorded in July.
The numbers are likely to fuel fears that a V-shaped bounce back from the damage done by the pandemic is now slowing ahead of further uncertainty in the coming winter months.
The data also represents a hammer blow to the Chancellor after he tried to encourage people to return to normal life by paying half of their restaurant bills on some days in August as part of the Eat Out to Help Out scheme.
The ONS’s deputy national statistician for economic statistics Jonathan Athow said: ‘The economy continued to recover in August but by less than in recent months.
‘There was strong growth in restaurants and accommodation due to the easing of lockdown rules, the Eat Out to Help Out scheme, and people choosing summer staycations. However, many other parts of the service sector recorded muted growth.
‘Construction also continued its recovery, with a significant boost from housebuilding. There was limited growth in manufacturing, which remains down on its pre-pandemic level, with car and aircraft production still much lower than the start of the year.’
The latest data published by the Office for National Statistics suggests the V-shaped recovery from the coronavirus crisis is slowing
The 2.1 per cent economic growth was recorded despite Chancellor Rishi Sunak’s Eat Out to Help Out scheme being in place during August