The UK economy expanded by 15.5% between July and September as it rebounded out of the recession caused by the spring coronavirus lockdown, the Office for National Statistics has said
However the economy has yet to recover to its pre Covid levels and is expected to contract in the next quarter due to the recently introduced lockdown regulations
GDP grew 1.1% in September but remains 8.2% below its February peak.
Services grew 1.0%, 8.8% below Feb, Manufacturing grew 0.2%, 8.1% below Feb)
and Construction grew 2.9%, 7.3% below Feb
Anna Leach, CBI Deputy Chief Economist, said:
“Economic growth bounced back strongly over the summer, as lockdown was eased. But with lockdowns reintensifying across the UK’s regions and nations in October and November, we’re likely to see activity fall again over the winter months.
“Many businesses have adapted their operations already, as illustrated by this week’s record redundancy figures, but the second hit to sectors that have already suffered hard may be too much to bear. Additional government support – notably the extension of the Job Retention Scheme – is welcome. And the recent good news on a vaccine gives hope for the future, and may give some stimulus to spending.
“But this time should be used wisely: investing in mass testing, ensuring a seamless test and trace system and an efficient vaccine rollout will be critical to tackling the pandemic. At the same time, devising a long-term vision for the economy – spearheaded by a new Economic Recovery Commission – is key to securing a sustainable recovery.”