Economy inches towards recovery in August

Oct 14, 2021

The economy is back on its path to recovery as GDP is estimated to have grown by 0.4% in August 2021 - the first full month without any coronavirus-related restrictions - data from the Office for National Statistics shows.

The positive growth follows a contraction in GDP by 0.1% in July, although the economy remains 0.8% below its pre-pandemic level in February 2020.

August growth was spurred on by the accommodation sector, which grew by 22.9%, while arts, entertainment and recreation grew by 8.5%.

Offsetting the recovery were human health and social work activities and retail trade, which fell by 4% and 1.9% respectively.

The International Monetary Fund recently predicted the UK economy would grow by 6.8% in 2021, following a fall of 9.8% in 2020.

Julian Jessop, economics fellow at the free market think tank Institute of Economic Affairs, said:

"The rebound in economic activity will help to repair the public finances without the need for any more tax increases, but also makes it increasingly hard to justify keeping interest rates at the emergency low of 0.1 per cent."

James Smith, research director at the Resolution Foundation, said the economy is about 4% stronger than the Office for Budget Responsibility had predicted in March 2021.

He said this will be "very welcome news for the Chancellor", but warned it would be risky to assume the recovery is complete.


Talk to us about your business.

Make the switch to us

Choosing StationOne means opting for a service where excellence, expertise, and a personal touch converge. Our rates reflect the quality and dedication we bring to every interaction. We are not just about the numbers; we're about fostering growth, ensuring compliance, and paving the way for your business's prosperity.

Get in touch

Fancy a new accountant? Contact us for tailored financial guidance.

Tell us about your business

Share your business needs; we'll provide the bespoke financial solutions.

We'll take it from here

Trust us to lead your financial operations to success.

"Enables us to be more profitable"

"Having been a client for many years we have learned how important Food and Drink GP’s are to the running of our restaurants and getting these to the correct %’s every week enables us to be more profitable and then be able to concentrate on managing other costs"

StationOne favicon3

How can we be of service?

Embark on your journey towards financial excellence with StationOne. Let us show you what it means to have not just an accountant, but a committed partner in your corner.