Britain’s economy is enjoying ‘an unprecedented growth spurt’ as it bounces back from the pandemic, latest figures show.
The pace of recovery – far faster than expected at the time of the Budget in March – is set to hand Chancellor Rishi Sunak a windfall as borrowing falls more quickly than expected. That could pave the way for tax cuts rather than tax rises before the next election.
Bouncing back: The pace of recovery – far faster than expected at the time of the Budget in March – is set to hand Chancellor Rishi Sunak a windfall
In a sign the economy is firmly in recovery mode, the Office for National Statistics said retail sales rose by 9.2 per cent in April as the reopening of ‘non-essential’ stores sent shoppers back on to the High Street.
A separate report by IHS Markit showed activity in the private sector is rising at the fastest pace for more than 20 years.
The so-called purchasing managers’ index – where scores above 50 show growth – rose from 60.7 in April to 62 in May.
That was the highest score since records began in 1998. Chris Williamson, chief business economist at IHS Markit, said: ‘The UK is enjoying an unprecedented growth spurt as the economy reopens. Factory orders are surging at a record pace as global demand for goods continues to revive, and the service sector is reporting near-record growth as the opening up of the economy allows more businesses to trade.
‘Business confidence has meanwhile hit an all-time high as concerns about the impact of the pandemic continue to fade.’
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