London Daily

Focus on the big picture.
Sunday, Aug 31, 2025

Britain's economy springing back to life with ease in lockdown

Britain's economy springing back to life with ease in lockdown

In a boost for Chancellor Rishi Sunak, economists now believe Britain is heading for its strongest year of growth since 1988. The data also supports the view of the Bank of England's chief economist.
Britain's economy is springing back to life as the rollout of Covid vaccines and easing of lockdown restrictions boost business.

In the latest health check on the UK, research group IHS Markit said the private sector is on course to record its fastest pace of growth for more than seven years this month.

Separate figures from the Office for National Statistics (ONS) backed this up, with data showing the recovery got under way in March as shoppers splashed out in preparation for the lifting of restrictions on April 12.

The ONS said retail sales rose 5.4 per cent last month despite 'non-essential' stores remaining shut, amid strong demand for clothes as well as plants and flowers for the garden.

Sales of mobility equipment such as scooters, wheelchairs and walking aids also rose thanks to 'older consumers who were venturing out more following the vaccination roll-out'.

The figures came just a day after a survey by the CBI found confidence among British manufacturers at its highest since 1973.

In a boost for Chancellor Rishi Sunak, economists now believe Britain is heading for its strongest year of growth since 1988. The upbeat data also supports the view of Bank of England chief economist Andy Haldane who has said Britain will bounce back like a 'coiled spring' once liberated from the shackles of lockdown'.

James Smith, an economist at ING, said: 'Pretty much wherever you look, there are signs that the harsh economic winter is finally thawing.'

IHS Markit said its purchasing managers' index (PMI) of activity in the UK, where scores below 50 show decline and above 50 show growth, rose to 60 this month having been close to 40 early this year. That was the highest reading since late 2013.

Chris Williamson, chief business economist at IHS Markit, said: 'In more than 23 years of PMI, we have only seen one spell of faster growth than this, between August and November 2013. Business activity should continue to grow strongly in May and June as virus restrictions are eased further, setting the scene for a bumper second quarter.'

Economists believe Britain is set for growth of 5.7 per cent this year the best since 1988. JP Morgan, Oxford Economics and Bloomberg Economics expect a swifter recovery, with growth of 7 per cent-plus, that would be the best performance in the post-war era.

Andrew Goodwin, of Oxford Economics, said: 'Consumers are champing at the bit to spend. Retail sales surged in March, even though many physical stores remained closed, while the reopening of nonessential stores and outdoor hospitality in England on April 12 appears to have generated a surge in spending over the past couple of weeks.'
Newsletter

Related Articles

0:00
0:00
Close
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
Federal Reserve Independence Questioned Amid Trump’s Push to Reshape Central Bank
British Politics Faces Tumultuous Autumn After Summer of Rebellions and Rising Farage Momentum
US Appeals Court Rules Against Most Trump-Era Tariffs
UK Sought Broad Access to Apple Users’ Data, Court Filing Reveals
UK Bank Shares Dive Over Potential Tax on Sector
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
×