"Renewed momentum" for UK economy as March figures bounce back

The Office for National Statistics (ONS) has today reported that the economy bounced back in March after a dip at the beginning of the year.

The UK’s economy grew by 2.1 per cent in March, which the figures suggest are due to the easing of lockdown restrictions.

The March figures, which are the fastest since August 2020, offset some of the economy’s fall in the previous two months, with 2021’s first quarter totalling an economic decrease of 1.5 per cent.

Despite March’s upturn, the economy still rests 8.7 per cent lower than it did before the onset of the pandemic.

This comes just one day after the Queen’s Speech, in which she set out plans to “level up” economic growth.

Suren Thiru, head of economics at the British Chambers of Commerce (BCC), commented:  “While the UK economy contracted in the first quarter, the downbeat headline figure masks a renewed momentum through the quarter from January’s drop in output to an exceptionally strong March outturn as lockdown measures started to ease.  

“The decline in economic output in the first quarter largely reflected the squeeze on activity from coronavirus restrictions, which was partly offset by growing business resilience to those restrictions and a monthly boost from the reopening of schools in March. 

“The first quarter decline should be followed by a robust rebound in the second quarter as the effects of the release of pent-up demand, as restrictions ease and the strong vaccine rollout, are fully felt.    

“However, with the longer-term economic damage caused by coronavirus likely to increasingly weigh on activity as government support winds down, the recovery may be slower than many, including the Bank of England, currently predict.” 

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