The UK economy grew 4.8% in the second quarter as the easing of restrictions powered a rapid expansion

• UK GDP grew 4.8% in the second quarter as the vaccine rollout and easing of restrictions boosted growth.
• The economy grew a stronger-than-expected 1% in June, the Office for National Statistics said Thursday.
• Solid growth left UK GDP 2.2% below its pre-pandemic level in June and on track to recover fully in 2021.
• Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The UK economy grew at a rate of 4.8% in the second quarter after shrinking 1.6% in the first, as the easing of COVID-19 restrictions and a rapid vaccine rollout powered a solid economic rebound.

Gross domestic product increased more than expected in June, rising 1% month-on-month, the Office for National Statistics said on Thursday. That was ahead of the 0.8% expected by economists and more than the 0.6% gain in May.

Overall, the level of UK GDP in June was around 2.2% below its pre-pandemic level in February 2020. The Bank of England expects the economy to regain its pre-COVID size by the end of 2021.

“The UK economy has continued to rebound strongly, with hospitality benefiting from the first full month of indoor dining, while spending on advertising was boosted by the reopening of many services,” said Jonathan Athow, deputy national statistician at the ONS.

Read more: UBS shares 5 investing strategies to profit from the comeback of inflation-linked trades – and says fears about a Fed policy mishap are overblown

Services were the main driver of economic growth in June, growing 1.5% after expanding 0.7% in May.

UK Chancellor Rishi Sunak said: “Today’s figures show that our economy is on the mend showing strong signs of recovery, thanks to our plan for jobs and successful vaccine programme.”

“I know there are still challenges to overcome, but I feel confident in the strength of the UK economy and the resilience of the British people,” the finance minister added.

Ruth Gregory, senior UK economist at consultancy Capital Economics, said: “We are comfortable with our view that monthly GDP will return to its February 2020 pre-pandemic size by October and that the economy may yet surprise most forecasters by emerging from the pandemic without much scarring.”