Recent data shared by the government reveals Britain's economic recovery from the ongoing pandemic is getting back on track, however, it comes with an increased borrowing which has gone past the 2 trillion pound mark. Retail sales rose above pre-pandemic levels in July, the first full month of many shops reopening after lockdown, and August's Purchasing Managers' Index (PMI) data shows the fastest growth in almost seven years.
The Office for National Statistics said retail sales in July were 1.4 per cent above year-ago levels and 3 per cent above their level before the pandemic. August's preliminary composite PMI, which covers most businesses outside retail, hit its highest level since October 2013. However, people are increasingly losing jobs, with employers making staff redundant rather than bringing them back from a government-subsidised furlough scheme that expires in October.
The Bank of England forecasts unemployment will reach 7.5 per cent by year-end, almost double its most recent reading. Meanwhile, the Confederation of British Industry said manufacturing orders were “severely depressed” with little improvement in August.
Within retail, grocery sales are up 3 per cent on the year and online sales are 50 per cent higher than before the pandemic. However, sales volumes at clothing and footwear stores are 25 per cent lower than last year.
