Recreation and tourism sector fuelling UK recovery, says Lloyds Bank
According to the latest Lloyds Bank UK Recovery Tracker, the tourism and recreation sectors reported the sharpest rise in output growth month-on-month
The UK’s tourism and recreation sector accelerated the country’s economic recovery in May coming out of lockdown, according to the latest Lloyds Bank UK Recovery Tracker.
Due to the pent-up demand from consumers, the sector recorded the sharpest rise in output growth month-on-month due to renewed interest in the country’s hotels, pubs and restaurants, jumping 62.4% in May versus 51.9% in April on the tracker.
All 14 sectors monitored by the tracker, which includes hospitality and manufacturing, reported job creation during May, which is up from 12 sectors in April.
Scott Barton, the managing director of corporate and institutional coverage at Lloyds Bank Commercial Banking, said: “May’s results show consumer demand is pushing the UK’s economic recovery forward.
“It’s particularly encouraging to see the performance of tourism and leisure businesses improve again.”
He added: “Even though the next step on the Government’s roadmap out of lockdown has now been delayed, we are hopeful that consumer-facing businesses will continue to recover over the summer months.”
Jeavon Lolay, head of economics and market insight at Lloyds Bank Commercial Banking, said: “When we look at the pace of growth, sectors that have been acutely affected by Covid-19 restrictions are now outpacing sectors that have been able to operate more freely during lockdown.
“Whether the four-week delay to further easing of restrictions will impact this trend is unclear. But while the delay is understandably disappointing for many businesses, there’s no denying that the economy is now on a much sounder footing.”
