The post-lockdown economic rebound slowed sharply in May despite a relaxation of social-distancing rules, according to official data which also showed a hit to carmakers from the global shortage of microchips.
Gross domestic product expanded by a monthly 0.8 per cent, much faster than its typical pre-pandemic pace but down from 2% in April. It was also a lot weaker than the median forecast of 1.5% in a Reuters poll of economists.
"Of course, the pace of the recovery was always going to slow as the economy climbed back towards its pre-crisis level. But we hadn't expected it to slow so much so soon," Paul Dales, an economist with Capital Economics, said.
READ MORE: Scottish economy grows at a record pace
The Bank of England expects Britain's economy to grow by 7.25% this year, the fastest since 1941. Last year output plunged by almost 10%, the biggest drop in more than 300 years.
Britain's dominant services sector grew by a weaker-than-expected 0.9% in May from April as a huge 37.1% monthly jump for accommodation and food services failed to offset slower increases elsewhere in the sector.
Supermarket sales fell as more people ate out, and education output dropped due to a decline in school attendance. Reduced Covid-19 testing also weighed on GDP.
Arran hotel closes and others at reduced hours after Covid cases hit island
The Douglas Hotel on Arran has temporarily closed and other eateries and attractions may be running at reduced hours while the island deals with Covid cases.
The hotel announced today that it will be closing with immediate effect due to two staff members testing positive for the virus. It aims to reopen on July 19.
It comes after Visit Arran assured visitors to the island that everyone is doing their best for the community after a small number of Covid cases were confirmed.
READ MORE: Isle of Arran's Douglas Hotel closes after positive cases
Around 500 jobs to go at Glasgow Life amid Covid crisis recovery
Around 500 jobs will go at the organisation which runs Glasgow’s culture and leisure services.
Glasgow Life was severely hit during the pandemic and lost £38million last year with its estimated revenue for 20/21 just £6.4m.
The organisation confirmed that staff numbers will be cut back by 500 over a period of time.
READ MORE: Glasgow Life will see 500 jobs go amid covid crisis recovery
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