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- UK GDP grew more than expected, industrial production unexpectedly declined
UK GDP grew more than expected, industrial production unexpectedly declined
According to the report from Office for National Statistics, UK gross domestic product (GDP) is estimated to have grown by 2.3% in April 2021, the fastest monthly growth since July 2020, as government restrictions affecting economic activity continued to ease. Economists had expected a 2.2% increase.
The service sector grew by 3.4% in April 2021, with consumer-facing services re-opening in line with the easing of coronavirus restrictions and more pupils returning to onsite lessons.
Output in the production sector fell by 1.3% in April 2021, the first fall since January 2021 as three of the four sectors contracted. Economists had expected a 1.2% increase.
Within production, mining and quarrying output contracted sharply, by 15.0%, in April 2021 because of planned temporary closures for maintenance of oil field production sites.
The construction sector contracted by 2.0% in April 2021 following a strong March, with new work slowing down faster than repair and maintenance.
April’s GDP remains 3.7% below the pre-pandemic levels seen in February 2020, however it is now 1.2% above its initial recovery peak in October 2020.
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