The UK’s tourism and transport sectors saw the fastest month-on-month growth in May as some Covid-19 restrictions were lifted, including the ban on international travel.
The Lloyds Bank UK Recovery Tracker found that 11 out of 14 UK industry sectors had seen growth in May compared with their performance in April.
Tourism and recreation recorded a score of 62.4 in May, indicating strong growth in the sector, which includes travel agents alongside hotels, pubs and restaurants. While the transport sector’s score increased to 63.2 in May.
Lloyds said both sectors had “benefited from a release of pent-up consumer demand and domestic travel resuming during May”.
But the bank added it was “unclear” what impact the government’s four-week delay to the final easing of restrictions, now scheduled for 19 July, would have on these sectors.
The tourism and recreation sector also reported a rise in employment levels during May for the first time since January 2020.
Jeavon Lolay, head of economics and market insight at Lloyds Bank Commercial Banking, said: “When we look at the pace of growth, sectors that have been acutely affected by Covid-19 restrictions are now outpacing sectors that have been able to operate more freely during lockdown.
“Whether the four-week delay to further easing of restrictions will impact this trend is unclear. But while the delay is understandably disappointing for many businesses, there’s no denying that the economy is now on a much sounder footing.”