UK companies benefit from pent-up demand post-lockdown

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There are signs that the UK’s economy is shaping up for a rapid recovery helped by the fast rollout of Covid-19 vaccinations

Shoppers pass a Zara clothing store as a worker redresses the window display on Oxford Street in central London, the UK, on April 20 2021. Picture: BLOOMBERG/HOLLIE ADAMS

The survey added to signs that the world’s fifth-biggest economy, which shrank by nearly 10% in 2020, is shaping up for a rapid recovery helped by the fast rollout of Covid-19 vaccinations. Retailers also reported a rise in purchases of mobility equipment as older people left their homes after their vaccinations and there was a jump in sales at garden centres, reflecting the boom in gardening over the past year.

“We now seem to be seeing the first evidence of the release of the pent-up demand that was built up over the many months of lockdown as restraints begin to be lifted,” said Rhys Herbert, senior economist at Lloyds Bank.The evidence of momentum in Britain came after data unexpectedly showed the eurozone economy also picked up pace April, despite slower progress in vaccinating the bloc's population.

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