12 August: Reduction In Economic Activity Attributed To Jubilee Holidays
Gross domestic product (GDP) figures out today from the Office For National Statistics (ONS) show the UK economy contracting by 0.1% in the second quarter of the year, April to June 2022.
There was a significant 0.6% reduction in June, attributed by the ONS to a reduction in economic activity because of Queen Elizabeth’s platinum jubilee celebrations: “It is important to note that the Jubilee and the move of the May bank holiday led to an additional working day in May 2022 and two fewer working days in June 2022.
“Therefore, this should be considered when interpreting the seasonally adjusted movements involving May and June 2022.”
The economy actually grew by 0.4% in May following growth of 0.8% in the first quarter of the year. But economists agree that the long-term trend for the economy is towards a recession – generally seen as being when the economy shrinks for two quarters in a row.
The ONS says the services sector fell by 0.4% in the quarter, largely due to a ‘negative contribution’ by human health and social work activities. It says this reflects a reduction in coronavirus (COVID-19) activities.
However, the benefits of an easing of coronavirus restrictions saw growth in other areas, with travel agencies and tour operators doing particularly well along with accommodation and food service activities, and arts, entertainment and recreation…
