Britain’s economy has had a slightly worse start to the year than initially thought, as households spent money in the latest lockdowns, revised figures show.
Gross domestic product (GDP) declined by 1.6% – compared to a initial estimate of 1.5% – because the renewal of home support measures has slowed down business activity and spending, according to the Office for National Statistics (ONS).
The latest data showed that the impact of restrictions in areas such as hotels and restaurants, education and manufacturing was slightly worse than previously believed at the start of the January-March period.
The reopening helped GDP start to recover
ONS figures showed household spending fell more than expected, falling by £ 9.9bn in the first quarter at a time when much of the economy was shut down.
Meanwhile, the household savings rate was 19.9%, its second-highest level on record, the ONS said.
The measure of how much money people need to save as a proportion of their overall income was only higher in the spring of last year during the first lockdown.
Britain’s economy shrank 9.8% last year due to the pandemic – the biggest drop in three centuries.
It was put on the brakes again earlier this year as the UK again closed the hatches against a new wave of infections.
But monthly data suggests that the reopening of the economy since then has helped it start to recover, with growth of 2.3% recorded in april.
Please use Chrome browser for a more accessible video player
The Bank of England forecasts that overall this year, GDP will grow at the fastest rate since World War II.
However, an early estimate of June’s economic performance from a closely watched business survey last week suggested the pace of the …
More information about this article Read More
Source: news.sky.com
This notice was published: 2021-06-30 06:29:00
