UK Economy grew 0.6% in September slightly more than expected… But GDP still remains lower pre-pandemic levels. Fears are growing about spiking Inflation

  • Latest ONS data show that the economy increased by 0.6% in September
  • Although the figure was better than anticipated, July and August were both revised downwards
  • There are increasing fears about inflation becoming out of control, and squeezeing families.   










Although the UK’s economy saw a 0.6% increase in September, it is still not back to its pre-pandemic level.

According to the latest figures, GDP grew by more than 0.4% as predicted by analysts.

Nevertheless, this figure was quite strong after the Office for National Statistics reduced its August and July estimates.

Rishi Sunak acknowledged that there are still “challenges” as UK plc remains 0.6% smaller than it was before the coronavirus outbreak.

Global GDP increased by 1.3% in the third quarter, an impressive slowdown after the initial phases of recovery when supply chain chaos was biting. 

The picture appeared amid increasing alarm over the possibility of inflation. This is well beyond the Bank of England’s target of 5%.

Yesterday’s headline rate in the USA was 6.2 percent, which is its highest level for over 30 years. 

According to the latest figures, GDP grew by more than 0.4% as predicted by analysts.

Sunak claimed that: “The economy continues its recovery from Covid, and thanks to schemes such furlough the unemployment has fallen for eight consecutive months. And we are expected to see the strongest growth in G7 this calendar year.

“As the world opens up, we realize that there are still many challenges.

“That’s why last month at the Budget I laid out my plan for building a strong economy for the British people.

“We are continuing to support companies, jobs, and people in order that we can reach our vision for a high skilled, high productivity economy, where work is valued.”

Grant Fitzner (ONS Chief Economist) stated: “Growth picked-up in September, and the UK’s economy is now just slightly below prepandemic levels.

“This is the latest rise in health care visits, which was boosted by increased visits to GP offices across England. 

“Lawyers had another busy month, with house buyers racing to purchase before the holiday ended. These were partly offset by drops in the sale and manufacture of cars.

“Notably, in September and October of this year, investment by businesses was still well below levels pre-pandemic. 

“Meanwhile, the trade deficit widened because goods exports to non EU countries dropped and fuel imports from non EU countries rose.

The recovery in the services sector was the biggest contributor to growth in September

In September, the largest contributor to growth was the sector’s recovery.

In the third quarter overall GDP grew by 1.3 per cent, a sharp slower from the initial phase of the recovery with supply chain chaos biting

Global GDP increased by 1.3% in the third quarter, an impressive slowdown from initial phases of the recovery that saw supply chain chaos wreaking havoc.

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