July is the sixth consecutive month of UK GDP growth. However, analysts estimated that the British economy would grow by 0.5% after a 1% increase in the previous month.
Overall, GDP grew by 3.6%. In the three months to July, however, the British economy is still 2.1%. Below the pre-pandemic peak, the Office for National Statistics (ONS) reported.
After easing social distancing restrictions on July 19, England has seen growth through outdoor events such as sporting events, parks and festivals. However, the main driver of GDP growth was industrial production (+1.2%).
“Oil and gas provided the strongest boost. Auto production continued to improve after the recent shortage of spare parts,” said Jonathan Athoe of ONS.
Services remained largely unchanged in July, but the construction sector contracted for the fourth consecutive month (-1.6%). Construction suffered from a shortage of building materials as prices rose and supply dwarfed demand.
Several companies suffered a staff shortage in July, as workers were forced to self-isolate at home after being alerted by the NHS Test and Trace app to an infected person, resulting in what was dubbed ‘pingdemia’.
Bank of England Governor Andrew Bailey said on Wednesday that the post-pandemic recovery was showing signs of “stabilization” but reiterated the view that rising inflation would not be sustainable.
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