After six successive months of economic growth following the pandemic, in July the growth had slowed to 0.1%, compared with 1.0% in the previous month.
The reopening of the arts and entertainment sector is thought to have contributed to the ongoing growth however an increase people being ‘pinged’ to self-isolate has kept many in their homes.
The economy is still below it’s pre-pandemic levels by 2.1% but has seen a growth for six consecutive months. July, however, saw a sharp decrease in GDP growth compared to June according to data by the Office for National Statistics (ONS).
GDP grew by 3.6% overall in the three months before July and the ONS suggest this was largely due to the performance of the services sectors, reflecting the gradual reopening of accommodation, food services and non-essential stores. Activities within arts, entertainment and recreation grew by 9.0% with the reintroduction of events such as festivals and nightclubs, following the easing of social distancing restrictions on 19 July 2021.
Although the reopening of shops and hospitality venues gave the economy a boost, the increase of those forced to self-isolate at home following being alerted by the NHS Test and Trace app meant that firms were left with a lack of staff. Other sectors have not faired as well, with construction output falling for a fourth consecutive month in July by 1.6%. This was driven by a fall in new work and maintenance. The manufacturing sector remained flat in July after five months of growth with research suggesting staff shortages as a challenge to production, said the ONS.
Many believe that recovery will be a long road for the UK economy, with many sectors still finding their feet after unprecedented times. Economic growth data can be found on the Office for National Statistics GDP Monthly Estimate.
The finance sector has played an integral part in supporting UK SMEs throughout the ongoing pandemic through the implementation of BBLS and CBILS loans as well as previously standing finance solutions such as Invoice Finance. At Skipton Business Finance, we are proud to have continued to support businesses through this challenging and unprecedented time. We continue to work hard to deliver a high quality of service to our clients and to deliver effective Invoice Finance solutions to businesses across the country.
Find out more about Invoice Finance from Skipton Business Finance here.