UK GDP grew more than expected in March
12.05.2021, 06:14

UK GDP grew more than expected in March

According to the report from Office for National Statistics, UK gross domestic product (GDP) is estimated to have grown by 2.1% in March 2021, the fastest monthly growth since August 2020, as schools in some parts of the UK reopened throughout the month. Economists had expected a 1.3% increase.

The service sector grew by 1.9% in March 2021, with schools re-opening across England and Wales and retail trade sales continuing to show strength.

Output in the production sector grew by 1.8% in March 2021, as manufacturing grew for a second consecutive month, at 2.1%.

The construction sector grew by 5.8% in March 2021, driven by growth in both new work and repair and maintenance. The growth in construction (and indeed manufacturing) reflect businesses continuing to adapt, including development of COVID-19 secure environments to operate in.

March’s GDP is 5.9% below the levels seen in February 2020, and 1.1% below the initial recovery peak in October 2020.

Latest estimates also show only small revisions to GDP in January (now negative 2.5%, from negative 2.2%) and February (now growth of 0.7%, from 0.4%).

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