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The economy grew 2.1% in August, but remained 9.2% below its February level, official figures show.
Even the Eat Out To Help Out scheme, where the government subsidized those who dined out, failed to bring the economy anywhere near the 4.6% increase analysts expected.
The Office for National Statistics said the manufacturing sector grew 0.7% (still 8.5% below February’s figure) and construction grew 3% (10.8% below February).
Chancellor Rishi Sunak will establish the next stage of the employment support plan later today.
The services sector, which represents around 80% of the UK economy, grew by 2.4%, leaving it 9.6% below the level observed in February.
More than half of the economic growth in August came from the lodging and food sector, this was driven by the Eat Out to Help Out program and ‘staycations’, according to ONS deputy national statistician for economic statistics, Jonathan Athow.
The blockade caused biggest recession in UK history in the second quarter of the year – a drop of 20.4% – driven by the first full month of COVID-19 restrictions in April.
The month-on-month growth was recorded in May and June.
It comes as restrictions for pubs and restaurants in the North of England and the Midlands are expected to be announced on Monday.
It also comes amid warnings of a deepening jobs crisis Labor retention scheme, which has sustained the salaries of almost 10 million people during the crisis, is liquidated.
The Bank of England has predicted that the UK could have three million unemployed by the end of the year, while business groups say that an exit from the EU without a trade deal in January risks compounding the damage.
Chancellor Rishi Sunak will establish today the next stage in business support measures that may have to close in the coming weeks and months, due to the growing number of coronavirus cases.
Responding to the GDP figures, he said: “Today’s figures show that our economy has grown for four consecutive months, but I know a lot of people are worried about the coming winter months.
“Throughout this crisis, my only goal has been employment – to protect as many jobs as possible and to support people to find other opportunities where this is not possible. This goal remains unchanged.
“That is why we are investing billions to help people get back to work and provide new opportunities for those who have sadly lost their jobs so that no one is left without hope.”
British Chambers of Commerce chief economist Suren Thiru said: “The increase in activity in August largely reflects a temporary boost from the reopening of the economy and stimulus from the government, including the Eat Out to Help program. Out, rather than a test of a ‘V shaped Recovery’.
“Although the UK remains on track to emerge from recession in the third quarter, the looming triple threat of rising unemployment, more restrictions and a disorderly end to the transition period means that the recent rebound in the economy is likely to economic production is short-lived. “
Jeremy Thomson-Cook, chief economist at Equals Money, said: “So far V-shaped recovery. UK GDP data released this morning shows that the growth rate for August fell to a third of what it was able to achieve in July, confirming that the UK recovery did not it is V-shaped. “
