Research Briefing | Oct 15, 2021

UK | The economy continues to claw back Covid losses

UK | The economy continues to claw back Covid losses

The UK economy made more progress in August in returning to its pre-Covid size. But supply-side friction and pressure on spending power from higher inflation point to a more sluggish growth period ahead.

What you will learn:

  • Still, as the recent very strong set of labour market numbers demonstrates, the recovery is far from out of steam.
  • Meanwhile, comments from MPC members suggest that opinions over future policy direction remain split. Upward revisions to Q2’s national accounts had left the economy closer to its pre-crisis size than initially thought.
  • Last week’s GDP release for August saw that gap narrow further. In August, the first full month after most remaining domestic Covid restrictions were lifted on July 19, output rose 0.4% m/m. 

Back to Resource Hub

Related Services

Industrial property


US: High debt costs suggest an industrial correction

The scale of the increases in debt costs, coupled with the low-yielding environment makes some repricing highly likely for gateway US industrial markets over the coming quarters.

Find Out More
Office building in London


High debt costs suggest European office price correction

Our analysis suggests a 10% correction is needed on average for the major office markets in Europe to compensate for the higher cost of debt, with prime yields required to soften by 10bps-75bps to generate a low-risk interest coverage ratio at a reasonable LTV.

Find Out More