Business

UK’s Covid recovery slows as economy grows by only 0.1% in October

The UK economy’s recovery slowed to 0.1% growth in October, leaving it still 0.5% behind pre-pandemic levels.

The performance, revealed in the latest figures from the Office for National Statistics, was weaker than experts expected.

The latest figures revealed this morning by the Office for National Statistics

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The latest figures revealed this morning by the Office for National Statistics

Last month, the ONS reported gross domestic product growth of 0.6% and analysts predict that GDP will grow 0.4% in October.

The construction sector pulled October’s results down, recording its biggest business decline since April 2020.

The industry is affected by shortages of raw materials and supply chain problems.

Meanwhile, service output grew 0.4% in October 2021, reaching pre-coronavirus pandemic levels last recorded in February 2020.

This follows strong growth of 0.7% in September 2021.

ONS chief economist Grant Fitzner said: “While GDP growth slowed in October, the UK health sector picked up strongly while used car sales and employment also boosted the economy. economic.

“Overall, the dominant services sector hit pre-pandemic levels for the first time in 20 months.

“These increases were offset by a decline in restaurants, which had fallen back after a strong summer, and reduced oil extraction and gas use.

“The construction sector also suffered its biggest drop since April last year, with significant declines in home and infrastructure construction jobs, in part due to a shortage of raw materials.”

It was not only the construction sector that was affected by supply chain problems in October.

Auto retailers also reported delays due to ongoing semiconductor shortages.

That is now affecting other industries, such as rentals and car rentals, which have already reduced activity.

Other sectors affected include machinery and equipment manufacturing and the production of rubber and plastic products.

In the three months to October, the economy grew 0.9%, reflecting strong service sector performance in September.

This is due to the easing of Covid restrictions, including the reopening of accommodation, hospitality, entertainment and arts services compared to three months ago.

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https://www.thesun.co.uk/money/16997104/uk-gdp-october-covid-bounce-back-slows/ UK’s Covid recovery slows as economy grows by only 0.1% in October

Bobby Allyn

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