Economic week ahead
The economy’s recovery is expected to lose momentum in monthly GDP figures for August, revealed on Friday. The Chancellor’s Eat Out to Help Out scheme gave the hospitality sector a muchneeded lift but forecasters expect growth in August to slow.
GDP is set to rise by around 5pc compared to the previous month, down from 6.6pc, but that will still leave output more than 7pc below its pre-virus levels. That would be the slowest growth since May and further pressure could be put on the economy in the coming months as the furlough scheme unwinds and a second wave of Covid-19 cases strikes the UK. Ahead of the official figures, more timely indicators will give economists a gauge of how the recovery progressed. A more detailed look at the services and construction PMIs are due on Monday and Tuesday.
Elsewhere, the eurozone’s rebound will also be in the spotlight with region-wide retail sales and German industrial production data due. Surveys suggest the recovery in the currency bloc is slowing as Covid cases rise again.