A woman wearing a surgical mask walks past Royal Exchange in the capital's financial district in London, England on March 11, 2020.
Richard Baker | In pictures via Getty Images
The UK economy grew 6.6% monthly in July, according to initial estimates released Friday, as the economy tries to recover from the sharp downturn caused by coronavirus-induced lockdown measures.
The estimated GDP (gross domestic product) growth in July was broadly in line with expectations. Economists polled by Reuters expected monthly growth of 6.7%, following growth of 8.7% in June and 2.4% in May, after a record 20% drop in April.
The data from the Office for National Statistics (ONS) on Friday showed a decrease of 11.7% compared to the same period last year, slightly below expectations of a decrease of 11.4%.
"While the UK economy has continued its steady recovery path, it must still account for nearly half of the GDP lost since the pandemic began," Darren Morgan, director of economic statistics at ONS, said in a statement Friday.
UK GDP in July was 18.6% above its April 2020 low but remained 11.7% below its pre-February pandemic level.
Thomas Pugh, British economist at Capital Economics, said while growth slowed slightly in July from the previous month, it nevertheless indicated that the record-breaking negative GDP growth rate in the second quarter will be followed by a record-breaking positive growth rate in the third. UK GDP declined 20.4% in the second quarter of 2020.
"However, July was likely the last of the big moves in activity and a full recovery is unlikely to be achieved until early 2022, which is why we believe the Bank of England will add another £ 250 billion to QE in total," Pugh predicted.
The country's emergence from lockdown measures and the reopening of pubs and restaurants in recent months resulted in accommodation and catering services activity increasing by 140.8% in July compared to the previous month, leading to an expansion in total service production 6.1% led.