Commenting on ONS data that shows GDP rising by 0.4% in August 2021 to 0.8% below its pre-pandemic level, Kitty Ussher, Chief Economist at the Institute of Directors said:
“August was a strong month for the UK economy, with the easing of restrictions and staycation boom causing a welcome growth in the service sector when compared with the previous month. Retail sales, however, were more muted but this could have been due to a higher proportion of disposable income being spent instead on going out over the summer.
“While the construction sector appears to have been affected by supply shortages, elsewhere in the economy there are signs that previous bottlenecks are able to self-correct to a certain extent. For example, the manufacturing sector had a strong month driven by a recovery in the production of motor vehicles as the global shortage in microchips begins to ease.
“We expect greater uncertainty into the autumn as supply shortages dampen confidence, however this will be offset by the positive effects of the full reopening of the education sector.”