UK growth slows again in October as rebound stalls

      Published on Friday, 11 December , 2020      40 Views     

  • UK Business

The economy remains well below the size it was before the crisis, the Office for National Statistics (ONS) said.

The UK has been recovering from a record slump earlier this year induced by the first coronavirus lockdown.

But output is expected to shrink again in November after England’s second shutdown forced businesses to close.

What is happening in the economy?

October was the sixth consecutive month of growth for the UK after the economy contracted by a record 19.5% in April amid the first lockdown.

The economy initially rebounded at a record rate, but growth has now begun to slow – with October’s growth figure down from the 1.1% seen in September.

The economy also remains fragile, with unemployment continuing to rise.

The ONS said there had been some areas of growth during October but the UK economy “still remains around 8% below its pre-pandemic peak”.

Was it all bad news?

Areas of the economy such as education, retail and car manufacturing grew strongly in October, the ONS said.

But the reintroduction of some coronavirus restrictions saw services growth almost grind to a halt as pubs and restaurants were hit by the 10pm curfew and other measures.

As services are such a big part of the economy, it meant the UK overall “grew only modestly”, the ONS said.

Dr Jonathan Gillham, chief economist at PwC, said the latest data “confirms what we already knew – the economy was slowing ahead of the second national lockdown in November”.

“Overall, there is still a lack of confidence in the economy, with sectors such as accommodation and food the worst affected.”

Category UK Business | 2020/12/11 latest update at 9:00 PM
Source : BBC | Photocredit : Google
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