UK economic growth slows in third quarter

by | Nov 11, 2021

UK economic growth slowed in the third quarter amid supply chain issues, according to figures released on Thursday by the Office for National Statistics.
GDP grew 1.3% between July and September, down from 5.5% in the second quarter and missing expectations for 1.5% growth. That leaves quarterly GDP 2.1% below where it was in the last quarter of 2019, before the pandemic hit.

GDP growth for July was revised down from a 0.1% drop to a 0.2% decline, while August’s was revised to 0.2% growth from 0.4%.

On a monthly basis for September, GDP grew 0.6%, which was ahead of the 0.4% increase expected.

Grant Fitzner, chief economist at the ONS, said: “Growth picked up in September and the UK economy is now only slightly below pre-pandemic levels.

“This latest increase was led by the health sector, boosted by more visits to GP surgeries in England.

“Lawyers also had a busy month as house buyers rushed to complete purchases before the end of the stamp duty holiday.

“However, these were partially offset by falls in both the manufacture and sale of cars.

“Notably, business investment remained well down on pre-pandemic levels in the three months to September.”

Paul Dales, chief UK economist at Capital Economics, said: “The big point is that the best of the recovery is now behind us. And we think progress is going to slow over the next six to nine months as shortages remain an issue and the real spending power of businesses and households is reduced by higher taxes and rising utility prices.

“This won’t prevent the Bank from raising interest rates from +0.10% (perhaps in December), but we think it will contribute to rates going no higher than 0.50% next year.”

Related articles

Aldi and Lidl win UK Christmas battle

Aldi and Lidl win UK Christmas battle

(Sharecast News) - German discounters Aldi and Lidl performed best in December, according to data from retail expert Kantar, which said a record £13.7bn was spent at British supermarkets over the four weeks ended 24 December. Kantar recorded Lidl's sales growth at...

UK house prices fall 1.8% YoY in December – Nationwide

UK house prices fall 1.8% YoY in December – Nationwide

(Sharecast News) - UK house prices fell by a higher-than-expected 1.8% year on year in December, mortgage lender Nationwide said on Friday, as higher borrowing costs and deposit requirements deterred buyers. Expectations were for a 1.4% fall. Prices remained flat on a...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!

x