UK Monthly GDP Up Again in July But Below Pre-Crisis level

JUL GDP +6.6% M/M (PREV +8.7%), -11.7% Y/Y (PREV -16.8%)

JUL INDEX OF SERVICES +6.1% M/M; -12.4% Y/Y; PRV +7.7% M/M, MED +7.0%

JUL IND PRODUCTION +5.2% M/M, PRV +9.3%, MED +4.2%

JUL MANUFACTURING +6.3% M/M, PRV +11.0%, MEDIAN +5.0%

JUL CONSTRUCTION +17.6% M/M, PRV +23.5%, MEDIAN +11.0%

M/M GDP posted another strong reading in Jul, rising by 6.6% after having grown 8.7% in Jun. According to the ONS, the UK economy still has to make up nearly half of the GDP lost since the start of the pandemic, with m/m GDP being 11.7% lower than in Feb. The service sector gained 6.1%, slightly less than markets expected and 12.6% lower than before the crisis. Within services, accommodation and food services saw the largest growth rate of 140.8%. The ONS noted that Education grew strongly, while pubs, campsites and hairdressers saw substantial increases as well. Moreover, car sales exceeded pre-crisis levels in Jul. IP rose 5.2% m/m in Jul, while mfg output grew 6.3%, driven by a marked improvement in the output of distilleries and car makers. The construction sector expanded 17.6%, beating expectations but remaining 11.6% below Feb's level.