The economy grew 2.1% in August but remained 9.2% below its February level, official figures show.
The Office for National Statistics figures showed the manufacturing sector grew by 0.7% (still 8.5% below February’s figure) and construction grew by 3% (10.8% below February).
The services sector grew by 2.4% (9.6% below February).
Chancellor Rishi Sunak will be setting out the next stage of the job support scheme later today
ONS deputy national statistician for economic statistics Jonathan Athow said: “The economy continued to recover in August but by less than in recent months.
“There was strong growth in restaurants and accommodation due to the easing of lockdown rules, the Eat Out To Help Out scheme, and people choosing summer ‘staycations’.”
The lockdown sparked the largest recession in UK history in the second quarter of the year – a slump of 20.4% – driven by the first full month of COVID-19 restrictions in April.
Month-on-month growth was recorded in May and in June.
It comes as restrictions are expected to be announced for pubs and restaurants in the north of England and the Midlands on Monday.
It also comes amid warnings of a deepening employment crisis as the Job Retention Scheme, that has supported wages of almost 10 million people during the crisis, is wound down.
The Bank of England has predicted that the UK could have three million unemployed by the end of the year, while business groups say an exit from the EU without a trade deal in January risks deepening the damage.
Chancellor Rishi Sunak will be setting out the next stage in job support measures later today.
British Chambers of Commerce head of economics Suren Thiru said: “The increase in activity in August largely reflects a temporary boost from the from the economy reopening and government stimulus, including the Eat Out to Help Out Scheme, rather than proof of a sustained ‘V’-shaped recovery.
“Although the UK remains on course to exit recession in the third quarter, the looming triple threat of surging unemployment, further restrictions and a disorderly end to the transition period means the recent rally in economic output is likely to be short-lived.”
Jeremy Thomson-Cook, chief economist at Equals Money said: “So much for the V-shaped recovery. The UK GDP data released this morning shows August’s rate of growth fell to a third of what it was able to reach in July, confirming that the UK’s recovery is not V-shaped.”