A new survey from Lloyds shows that the country’s growth slowed and inflation surged in most sectors of the economy in June. Transport, food and drink manufacturing, and household products were hardest hit, mainly due to labor shortages and a
shift in consumer preferences.

Most sectors were less optimistic about their potential over the next 12 months, which suggests that the recovery boom recorder after the end of lockdowns is starting to fade.

“Infections rising sharply alongside intensifying price pressures and skilled labor shortages only adds to the reopening challenges facing U.K. businesses,” said Scott Barton, managing director of corporate and institutional coverage at Lloyds, quoted by Bloomberg. “We are entering a new phase of the U.K.’s recovery,” added Jeavon Lolay, head of economics and market insight at Lloyds. “We are less likely to experience the rapid month-on-month output growth we’ve typically seen when businesses have been able restart operations after successive lockdowns.”

 

Things to read:

Italian blood samples revive debate over first signs of Covid in Europe (Financial Times)

ECB Set to Rewrite Stimulus Pledge After Raising Inflation Goal (Bloomberg)

Assets in Ant Group’s Flagship Money-Market Fund tumble (WSJ)