UK economy recovers more than expected in Q2

Britain’s economy expanded more than expected in the second quarter, official data showed on Thursday. 

The Office for National Statistics showed a 5.5% gain in gross domestic product (GDP), better than a 4.8% expansion in the preliminary estimate.

The development showed Britain’s fast economic recovery from the coronavirus lockdown earlier this year. However, indicators of slowdown surfaced recently due to post-pandemic supply and labor shortages.

The report also highlighted an increase of almost 8% in household spending in the same period as consumers use up their coronavirus lockdown savings.

The savings ratio dropped 11.7% from 18.4% in the first quarter of 2020. Food industry output surged 87.6% in quarterly terms as COVID-19 restrictions eased. Manufacturing output climbed 1.8% in the second quarter, despite a microchip shortage hitting car production.