The Office for National Statistics (ONS)' first estimate of UK Gross Domestic Product (seasonally adjusted annualized rate) for Q2 2021 reports growth of 20.7% following an annualized 6.2% decline in Q1. Compared to pre-pandemic quarter (Q4 2019), the UK economy is 4.4% smaller in Q2 2021. For Q2 2021, output increased in services, production and construction as COVID-19 restrictions were eased.

After contracting in the first quarter, services output grew in the second quarter with increased activity in wholesale, retail, accommodation and food services and education grew amid easing coronavirus restrictions and the re-opening of schools. These sectors provided the largest contributions to growth this quarter. Services output is now 3.5% below pre-pandemic levels.

Production activity was 3.3% lower than pre-pandemic levels as manufacturing grew 1.8% for the quarter. Motor vehicle production fell for the second consecutive quarter due to the global semiconductor shortage. Construction output rose in the quarter and remains 3.3% below pre-pandemic levels. 

A seasonally adjusted annualized rate shows what the percent change would be if the quarterly rate was compounded for four quarters. Reporting annualized rates facilitates comparability between annual and quarterly growth but can exaggerate change when series are volatile. UK GDP did not grow by 20.7% from Q1 2021 to Q2 2021.  Rather it would take four quarters of compounded growth at the same pace as reported in Q1 to increase UK GDP by 20.7%. UK real GDP increased 4.8% from Q1 2021 to Q2 2021 (seasonally adjusted, non-annualized).  

Office for National Statistics