BCC responds to ONS GDP figures for May 2021
Commenting on GDP figures for May 2021, published today by the ONS, BCC head of economics, Suren Thiru, said: “While the latest figures confirm the rebound in economic activity continued into May, the sharp slowdown in growth suggests that the recovery is losing a little steam as the temporary boost, from the earlier phases of reopening, fades.
“The increase in activity largely reflects a notable pick-up in output from pubs, restaurants and accommodation services, spurred by the easing of restrictions in the month, including the restart of indoor dining.
“The UK economy remains on track for a strong rebound in the second quarter. However, economic activity may remain muted in June as the impact of rising covid infections and the delay to the end of the roadmap are felt, despite an uplift to consumer activity from Euro 2020.
“Although the July reopening should provide a notable boost, any recovery may lose momentum if persistent staff shortages and supply chain disruption stifles business activity and rising Covid cases prompt a renewed reluctance among consumers to interact and spend.
“Clearer guidance is needed for businesses on what they should be doing to keep staff and their customers safe. Government must also set out contingency plans for any future virus response, to give firms the confidence to fully reopen.”
