Tourism & Recreation Sector Leads UK Recovery According to Lloyds Bank UK Recovery Tracker

Lloyds Bank UK Recovery Tracker - Cover
Lloyds Bank UK Recovery Tracker

UK closest to global benchmark since March

Ten of the fourteen sectors monitored by the UK Recovery Tracker saw output expand during September. Whilst up from nine in August, this was still nevertheless the second-lowest reading since February, as supply constraints impeded production across several manufacturing sectors.

The gap between UK and global growth slipped to a six-month low in September. The Global Composite Output Index rose from 52.5 in August to 53.0, its first increase since May, meaning that it was less than two points shy of the UK level (compared to a high of 5.6 in June).

UK manufacturing output growth (52.7) was only slightly faster than the global trend (52.0), as it joined most of Europe in seeing a slowdown as supply chain pressures escalated.

UK services maintained a modest positive gap against the world trend in September (55.4 vs. 53.4). Four of the six UK services categories monitored saw activity grow faster than their global equivalents, with Tourism & Recreation a notable outperforme.

Meanwhile in manufacturing, although Technology Equipment and Industrial Goods recorded far sharper upturns in production than that seen worldwide in September, the sector as a whole was held back by downturns across Metals & Mining and Household Products.

Nonetheless against Europe, the UK performed slightly better than in August. The number of ‘fine’ sectors recording stronger growth rose from two to five, driven by the service categories Tourism & Recreation, Transportation and Real Estate.

Find the complete Lloyds Bank UK Recovery Tracker here. (PDF)