The latest Gross Domestic Product (GDP) figures (released on 11th September) show the economy continuing to pick up after the huge decline between March and June, albeit it is still 11.7% smaller in July 2020 than a year ago. The ONS not only publishes total figures across the economy, but also for each sectors, which means that just as we recently took a look at job vacancies across industries, we can do the same with GDP to dig beneath the headlines and see what’s going on underneath the bonnet, so to speak.
The chart below breaks down the latest GDP figures, in terms of percentage change by month, compared to 12 months ago. You can take a closer look at any of these sectors by clicking on the buttons at the top of the chart:
The most striking chart is undoubtedly Accommodation and food services. In April, the almost entire shutdown of the sector meant that GDP shrank by a colossal 90.6%. However, the reopening of pubs, cafe’s, restaurants and other hospitality venues at the beginning of July has seen the sector rebound, albeit it is still 60.3% below levels 12 months ago. Construction has also seen a significant bounce back, from 44.2% down in April, to 12.7% in July.
Another notable observation is the fact that Wholesale and retail, which had declined by 34.9% from April to April, has since seen a dramatic recovery, and is now at 0% year on year — not growth, of course, but under the circumstances perhaps as good as we might have hoped for.
The sector that has been least affected by the disruption is Public administration and defence, which has actually continued to grow throughout the period, and which currently stands at 1.6% growth, year on year.
It remains to be seen how this will all effect jobs and unemployment, but the release of Claimant Count data, job vacancies, and unemployment data in the Labour Force Survey later in the month, which we’ll be covering, will give us more insights.
If you would like to find out about how we can help you understand what is happening in your area, so that you can be better prepared for recovery, contact us now