August economy grows by 0.4% amid hospitality sector boost

Gross domestic product (GDP) is estimated to have grown by 0.4% in August 2021, and was boosted by the hospitality sector, according to the latest Office of National Statistics data.

Services output grew by 0.3% in August 2021 with output in consumer-facing services increasing by 1.2%, while all other services rose by 0.1%.

Most of the growth seen in the August month was because of a 5.9% increase in food and beverage service activities, and a 47.9% increase in travel agency, tour operator and other related reservation services (growing from historically low levels).

There was particularly strong growth in accommodation, which grew by 22.9% boosted by hotels and campsites.

Meanwhile, arts, entertainment and recreation was the second-largest contributor to services growth, growing by 8.5% in August 2021.

Darren Morgan, director of economic statistics, ONS, said: “The economy picked up in August as bars, restaurants and festivals benefited from the first full month without Covid-19 restrictions in England. This was offset by falls in health activity with fewer people visiting GPs and less testing and tracing.

“However, later and slightly weaker data from a number of industries now mean we estimate the economy fell a little overall in July.”

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