UK GDP increased by 2.1% in August, according to the Office for National Statistics (ONS).
Despite this being the fourth consecutive monthly rise in GDP, the figures were below the levels of recovery seen in previous months, after growth of 6.4% in July and 2.7% in May.
The economic downturn has not recovered from the initial strict lockdown measures in March and April to curb the spread of Covid-19, with GDP still 9.2% lower than levels seen in February.
August GDP is 21.7% higher than levels seen in April.
Suren Thiru, the British Chamber of Commerce’s head of Economics, said: ‘‘While the latest data confirms a rebound in economic activity continued into August, the sharp slowdown in growth indicates that the recovery may be running out of steam, with output still well below pre-crisis levels.
‘‘The increase in activity in August largely reflects a temporary boost from the economy reopening and government stimulus, including the Eat Out to Help Out Scheme, rather than proof of a sustained ‘V’-shaped recovery.’’
He added: ‘‘Although the UK remains on course to exit recession in the third quarter, the looming triple threat of surging unemployment, further restrictions and a disorderly end to the transition period means the recent rally in economic output is likely to be short-lived.’’