The global economy is bouncing back strongly from the collapse it suffered in the spring, but fresh data suggest the early gains from the lifting of coronavirus lockdowns are already exhausted, adding to evidence that the world economy could take many months, if not years, to heal.
Fresh figures from the U.K. provide valuable insight into the state of the continuing economic recovery. The country is one of a handful of economies to release month-to-month figures for economic growth and is also the largest to do so, offering a more up-to-date snapshot than quarterly gross domestic product figures provide.
The U.K. economy grew 6.6% in July from June, having expanded by 8.7% in that earlier month. That puts the U.K. on track for a 15% gain in output in the third quarter, following a 20.4% drop in the second.
However, output remained 11.7% lower than it was in February, the last month before the pandemic began to disrupt the economy. Output in the services sector, which relies more on face-to-face contact, was down 12.6% from February, while industrial output was down 7%.
The figures strengthen the view of many economists that a return to pre-coronavirus levels of output will be painfully slow in most of the rich world, as the coronavirus deters everything from travel to entertainment to office work.
Source : www.wsj.com