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Recovery in the UK lost momentum in May

The UK experienced its fourth consecutive month of growth in May due to the reopening of some activities such as indoor catering, although the pace of growth was 0.8%, indicating a recession compared to previous months.

The economy has been particularly supported by the reopening of indoor hotels and restaurants, sports classes and museums, which have been closed since the end of December, and activities involving large indoor gatherings, including nightclubs, have been banned.

On the other hand, transport equipment industries, including automobiles, saw their production fall by 16.5% in May due to disruptions caused by microprocessors, the National Statistics Office (ONS) said on Friday. Growth slowed in May compared to late March (+ 2.4%) and April (+ 2%), and deregulation began in late December.

Less numbers than expected

According to ONS, gross domestic product (GDP) was 3.1% lower than in February 2020 before the shock of the epidemic. All health measures still in place must be removed by July 19th. “It is gratifying to see people returning as a place to thank for the success of the vaccine campaign, and this is reflected in economic growth numbers.Rishi Sunak, Minister of Economy and Finance welcomed the gathering.

Paul Tales, on the other hand, estimates that growth in the capital economy in May was far below average (+ 1.8%) as expected by analysts.More disappointing than the leading indicators is that the recovery in June lost some momentum. «Perhaps this means the recent increase and adjournment of Govt-19 cases“One month since the removal of all health restrictions, initially scheduled for June 21,”Reduces recoveryHe adds.

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Therefore, the capitalist economy now expects the UK to return to its pre-epidemic level. “In October2, not in August as previously expected. The UK is one of the developed countries hardest hit by the epidemic, with GDP falling nearly 10% last year, the worst in 300 years and nearly 130,000 deaths.