Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown:
‘’Festivals fans enjoying new found freedom in August and strong campsite bookings helped lifted economic output, with the arts entertainment and recreation sector growing by 9%.
“But the economy can’t rely on happy campers to sustain growth, given the storm clouds that have gathered over supply chains since the summer.
“It’s likely that the 0.4% growth in economic output overall in August was partly put due to the mini bounce back from the pingdemic which pushed a million people into self isolation in July. Weakness is seeping through these figures especially in the construction sector which shrank again for the fourth month in a row, by 0.2%. Widespread reports of raw material shortages is likely to have been partly to blame, as well as the difficulties of getting boots on the ground in building sites as sectors fight for skills, with 1.1 million vacancies opening up between July and September.
“Output was still estimated to be 0.8% below pre-pandemic levels in August, and the price rises, fuel shortages and labour shortages are potholes in the road which are likely to have put a brake on growth in September. It certainly won’t be an easy ride for Bank of England policy makers when they meet next to decide when to raise interest rates. Moving too sharply could see the economy go into reverse, but the Bank won’t want to risk losing credibility if prices keep accelerating.’’
About Hargreaves Lansdown
Over 1.64 million clients trust us with £135.5 billion (as at 30 June 2021), making us the UK’s largest digital wealth management service. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.
Our purpose is to empower people to save and invest with confidence and help them build their financial resilience over the long-term. We provide a lifelong, secure home for people’s savings and investments that offers great value and an incredible service making their financial life easy.
Clients rate our service highly, 90% say we are good, very good or excellent. Our expert research has been helping investors for almost 40 years through thick and thin.
In 2018, we also launched Active Savings, an online cash savings platform that lets savers move money easily between partner banks and building societies to help their money work harder without the hassle.