The UK economy surged 2.3% in April – the fastest monthly growth since July 2020, and a sure sign that a “rapid recovery is well underway”.

GDP is now 1.2% above its initial recovery peak in October 2020, according to Office for National Statistics (ONS) data, published today (11 June).

April’s growth left GDP up a massive 27.6% up from its low point in April 2020, but still down 3.7% on its pre-pandemic level in February 2020.

The surge was driven largely by the service sector, which enjoyed a 3.4% bump as consumer-facing services re-opened in line with the easing of coronavirus restrictions.

Commentators say caution should be exercised regarding the final stage of reopening on 21 June. However, any delay is unlikely to detrimentally affect the economy in the longer term.

Kingswood chief investment officer Rupert Thompson said: “Today’s data confirm a rapid recovery in the UK is well underway and will fuel hopes that the economy will in a few months’ time have recovered all of its pandemic-related losses.”

Jesús Cabra Guisasola, associate at Validus Risk Management, said: “There are no doubts that the UK has been one of the countries coming out in a better position from the pandemic after the success of its vaccination programme.”

He warned there are “reasons to be cautious” as coronavirus cases continue rising, with the delta variant spreading rapidly.

But added that there is “optimism surrounding sterling in the coming months”.

“Any delay on the reopening would have a minimal impact on the recovery,” he said.

Quilter Investors portfolio manager Hinesh Patel said that, given the “depths of where we were last year”, the economy is clearly returning to health. “The removal of social distancing when the time comes will give an additional turbo charge to the economy,” he added.

“That said,” he warned, “the economy will never return to how it was before. It has gone through structural changes never seen before on this scale and as such will still need to be nursed along as it returns to sustainable growth.

“But the point will come where the spending taps will need to be switched off the economy stand on its own two feet again. When this is remains to be seen but for now the sun is shining and the roof is being fixed.”