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Friday, December 3, 2021

UK economic growth slows in the third quarter


The UK economy grew by 1.3% between July and September, according to the Office for National Statistics (ONS).

It’s a slowdown from the second quarter, when many Covid restrictions were lifted.

The third-quarter expansion was slightly weaker than expected, despite higher consumer spending, according to the ONS.

The ONS, on the other hand, noted signs that supply chain issues were impeding growth.

ONS chief economist Grant Fitzner said a rush by home buyers to close deals before the stamp duty holiday expired had aided growth.

“However, these were partially offset by falls in both car production and sales.”

“Notably,” he said, “business investment remained significantly lower than pre-pandemic levels in the three months to September.”

According to the ONS, the UK economy is still 2.1 percent smaller than it was in the final three months of 2019, prior to the coronavirus pandemic.

According to the ONS, the economy expanded by 0.6 percent on a monthly basis in September.

Chancellor Rishi Sunak insisted that the latest figures demonstrated that his economic policies were effective.

“The economy is still recovering from Covid, and thanks to programmes like furlough, the unemployment rate has dropped for eight months in a row, and we’re expected to have the fastest growth in the G7 this year,” he said.

Some business leaders, however, were more cautious, with Suren Thiru, head of economics at the British Chambers of Commerce, predicting that the UK economy will “only likely return to its pre-pandemic level next year, trailing many of our international competitors.”

“Although monthly output rebounded through the quarter from July’s contraction,” he said, “this is more likely to reflect a temporary boost from restrictions easing, rather than a meaningful improvement in the UK’s underlying growth trajectory.”

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