DAVY VIEW

This morning’s UK GDP data show a 4.8% rebound in Q2 2021, a little shy of expectations. However, GDP rose by 1% in June, suggesting the rebound from COVID-19 restrictions continued into the summer at a sharp pace, driven by the services sector, with some erratic factors likely temporarily depressing construction and industrial output. Still, the out-turn may temper expectations for UK GDP growth this year, especially for those that expected in excess of 7% calendar year growth in 2021.