UK | The summer’s looking brighter for the economy

A decent rise in GDP in Q2 confirmed hopes that the relaxation of Covid
restrictions would trigger a strong response from the economy. And the quarter ended on a better-than-expected note for activity.
Timelier, high-frequency, indicators had raised concerns that rising infections
and the “pingdemic” would put the brakes on the recovery. But the latest
evidence went some way to relieving those worries.

What you will learn from this report:

• GDP in June narrowed the gap with pre-Covid levels, aided by the resumption of face to face activities
• High-frequency indicators suggest consumers were less affected by Covid concerns in early August
• Spending on credit and debit cards picked up in the latest data
• Obstacles to the recovery should prove manageable, with the economy exceeding its prepandemic size in Q4