LONDON – Britain’s economic bounce-back from the coronavirus lockdowns cooled in June despite a surge in business for the country’s hospitality sector, according to a survey which echoed other signs that the recovery has lost some of its pace.
Five of 14 sectors monitored by Lloyds Bank reported faster growth last month. Pubs, restaurants and other hospitality firms reported their strongest performance in nine years for as restrictions on indoor service were lifted.
But the overall expansion slowed from May, when 11 out of 14 sectors reported accelerating growth.
“The slowdown of output growth across the majority of sectors shows we are entering a new phase of the UK’s recovery,” Jeavon Lolay, head of economics and market insight at Lloyds Bank Commercial Banking, said.
“We are less likely to experience the rapid month-on-month output growth we’ve typically seen when businesses have been able restart operations after successive lockdowns.”
Eleven of the 14 sectors monitored in June were less optimistic about achieving stronger output volumes over the next 12 months, driven by concerns over inflation, capacity constraints and staff shortages, Lloyds said.
Purchasing managers’ indices for firms in Britain’s dominant services sector and manufacturing showed a slowdown in the pace of recovery in June.
The Bank of England is due to announce its latest forecasts for the economy on Aug. 5. Some of its policymakers have said that risks to the recovery mean they should maintain their huge stimulus, while others have said the time for easing off on the programme is approaching.