According to the latest Lloyds Bank UK Recovery Tracker, the number of UK sectors experiencing production growth rose to pre-pandemic levels for the first time in April when the third national lockdown restrictions were lifted.
Production of all 14 UK sectors monitored by the tracker rose from 11 in March in April and for the first time since August 2018.
In April, UK tourism and leisure companies’ output (51.9) rose for the first time since August last year after reopening of outdoor dining in pubs and restaurants.
The hospitality industry also pointed to an increase in appointment bookings in anticipation of further loosening of lockdown measures.
Similarly, real estate (53.6) grew again in April as businesses reopened the Offices and favorable conditions in the residential real estate market benefited.
Manufacturers of technology equipment (67.7) and metals and mining products (66.3) saw the strongest production growth for the second consecutive month in April.
A reading above 50 indicates that the output is rising, while a reading below 50 indicates that the output is contracting.
Jeavon Lolay, director of economics and market intelligence at Lloyds Bank Commercial Banking, said, “The UK recovery appears to be in the fast lane.
« The recent lifting of lockdown restrictions will only further fuel the already rapid pace of expansion at the beginning of this quarter.
» It’s no surprise that business optimism for the coming year is strongest in consumer services in the Hope that reopening the economy will lead to a sharp increase in demand.
« However, it will also be very interesting to see how UK manufacturers address the ongoing stresses on the supply chain as inflation concerns continue to mount. »
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