UK recovery cools in June despite rises in hospitality - Lloyds

Wednesday, July 21, 2021

Britain's economic recovery cooled down after the coronavirus outbreak in June, with a survey today showing other signs that the recovery has slowed down.

Five out of 14 sectors overseen by Lloyds Bank enjoyed faster growth in the past month.

Pubs, restaurants and other establishments recorded the strongest growth for nine years, as indoor restrictions were lifted.

But overall expansion slowed down from May, when 11 of 14 sectors reported faster growth.

"The slowdown of output growth across the majority of sectors shows we are entering a new phase of the UK's recovery," said Jeavon Lolay, head of national activity and market research at Lloyds Bank Commercial Banking.

Eleven of the 14 sectors monitored in June were less optimistic of increasing output in the next 12 months, spurred by inflation fears, capacity shortages and staff shortages, Lloyds said.

The purchasing managers indices for firms in the UK's dominant services sector and production showed the pace of recovery having slowed in June.

The Bank of England will release its latest economic forecasts on 5 August.