Published on : Friday, July 23, 2021
According to the Lloyds Bank UK Recovery Tracker, the UK hospitality businesses are growing at the fastest rate in nine years as of June. The tourism and recreation (63.1) sector recorded its strongest output growth since January 2012. Prior to April, the sector’s output had fallen every month since August last year.
The sector – which includes pubs, hotels, restaurants, travel agents and leisure facilities – benefited from the release of pent-up demand following another easing of lockdown restrictions across the UK in late May, a rise in bookings for domestic holidays and consumers watching Euro 2020 matches in pubs and fan zones.
Key sectors monitored grew for the third consecutive month in June – but only five reported faster month-on-month growth, down from 11 in May. The transport sector (51.8 in June versus 63.2 in May), household products (61.2 versus 68.5) and food and drink manufacturing (60.5 versus 67.3) reported the sharpest slowdowns in the pace of their growth. Transport businesses which include airlines and rail operators previously experienced a slump in bookings for overseas travel, affected by the government’s traffic light system.