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Nervousness over new Covid wave stalls UK economic recovery

Data show that activity declined throughout June despite the easing of restrictions

Consumers visited and spent less in UK shops, bars and restaurants in June, according to new data, suggesting the economic recovery lost momentum following a rise in Covid-19 infections.

On Monday, Boris Johnson, prime minister, announced that he intends to press ahead with the removal of all the remaining coronavirus restrictions on July 19 in an attempt to return to normality.

But while economists predict the July reopening could deliver another boost to the recovery, they noted that measures of economic activity such as consumers’ mobility, bank transactions and restaurants bookings, fell throughout June or stalled despite eased restrictions as the Delta variant continued to spread.

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