Hospitality reopening boosts UK economy

Monthly gross domestic product (GDP) grew by 0.8% between April and May, boosted by the reopening of the hospitality sector, particularly pubs, bars and restaurants.

The accommodation and food service activities sector contributed 0.87 percentage points to the month-on-month growth in services, with output growing by 37.1% from April. This was driven by growth in food and beverage service activities, which grew by 34% as coronavirus restrictions were eased and indoor eating and drinking was permitted once more.

According to Office for National Statistics (ONS) figures, the accommodation industry grew by 49.3% between April and May, driven by the reopening of hotels to leisure guests, although output was still 38.9% below its February 2020.

Food and beverage service activities saw strong growth, with a rise of 34% between April and May 2021, although output was still 9.4% below February 2020 levels. The growth was driven by pubs, bars and restaurants that could begin to serve customers indoors part-way through the month. Event catering and other food service activities also rose, as restrictions on large gatherings continued to ease.

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