Businesses that have borne the brunt of Covid-19 restrictions helped the economic recovery to accelerate in the UK during May, according to the latest Lloyds Bank UK Recovery Tracker.
Eleven of the 14 sectors monitored by the tracker reported faster output growth month-on-month during May, up from nine in April, as the UK moved further out of lockdown.
The tourism and recreation (62.4 in May versus 51.9 in April) and transport (63.2 versus 53.5) sectors reported the sharpest rise in output growth month-on-month.
A reading above 50 signals output is rising, while a reading below 50 indicates output is contracting.
The former – which includes pubs, hotels, restaurants and travel agents – and the latter – which includes bus and rail operators, and providers of logistics services – both benefited from a release of pent-up consumer demand and domestic travel resuming during May.
However, what is unclear is the extent of the impact that the four-week delay to further easing of lockdown restrictions will have on these sectors.
While the output of every UK sector monitored by the tracker grew for the second consecutive month in May, healthcare growth slowed most markedly month-on-month (52.5 versus 58.5), making it the worst performing…