Sector ‘main growth driver' of economy

By Nikkie Thatcher contact

- Last updated on GMT

Official figures: data from the Office of National Statistics found total GDP for the UK in February 2022 grew by 0.1% (image: Getty/atiatiati)
Official figures: data from the Office of National Statistics found total GDP for the UK in February 2022 grew by 0.1% (image: Getty/atiatiati)

Related tags: Finance, Economy, Ons

The accommodation and food services sector activities grew by 8.6% in February 2022 and was the main contributor to the service industry’s growth in that month, official figures have revealed.

Data from the Office of National Statistics (ONS) went on to reveal within this sector, the growth was driven by accommodation, which grew by almost a quarter (23%).

This partly reflected a bounce back following weakness in December 2021 and January 2022 due to the impact of Omicron on the industry.

There was a particular strength seen in hotels and camping grounds with February being this sub-sector’s first positive growth since August 2021.

Overall contribution

In fact, the accommodation and food services sector was the ninth largest contributor to GDP growth between February 2020 and February 2022, ahead of sectors such as financial and insurance activities and wholesale and retail: repair of motor vehicles.

But behind industries including constriction, transport and storage, and human health and social work activities, which was the main driver to monthly GDP being at 1.5% above pre-coronavirus levels.

In the services sector, administration and support service activities was the second largest contributor to growth, which grew by 2.7%.

Other sectors

Within this segment, travel agency, tour operator and other reservation service and related activities was the main driver, growing by about a third (33.1%) with a reduction in Covid-19 restrictions having a positive effect on the tourism industry.

This sector saw widespread positive grow in in five of six sub-sectors, partially offset by security and investigation activities, which dropped by 3.1%.

Overall, GDP grew 1% in the three months to February 2022 with services being the main contributor in that period, contributing 0.7 percentage points, while production and construction both contributing 0.1 percentage points each.

Specifically in February 2022, total GDP grew by 0.1% and is now 1.5% above its pre-coronavirus pandemic level.

Related topics: Legislation

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