Growth of the UK economy slowed before national lockdown

The Office for National Statistics says figures still remain 7.9% below pre-pandemic levels (Picture: Metro.co.uk)

Growth of the UK economy slowed to 0.4% in October as the coronavirus tier system was introduced in England.

But the Office for National Statistics (ONS) say figures still remain 7.9% below pre-pandemic levels.

Jonathan Athow, deputy national statistician at the ONS, said: ‘The UK economy has now grown for six months running but still remains around 8% below its pre-pandemic peak.

‘Public services output increased, while car manufacturing continued to recover and retail again grew strongly.

‘However, the reintroduction of some restrictions saw services growth hit, with large falls in hospitality, meaning the economy overall grew only modestly.’

The economy has now grown for six months running, recovering by 23.4% since its lowest point during the spring lockdown.

But this was the slowest pace of recovering in sixth months – after growing by 1.1% in September, 2.1% in August and 6.6% in July.

Experts expect GDP to go back into reverse in the final quarter, due to the impact of the second national lockdown in England.

The Office for National Statistics say figures still remain 7.9% below pre-pandemic levels (Picture: PA)

It is feared the second national lockdown will cause the economy to temporarily stop recovering (Picture: PA)

Gross domestic product (GDP) has still not fully recovered from its huge 25.3% fall seen during the first and second quarters of 2020.

It comes after the Confederation of British Industry director-general, Tony Danker, said this morning Covid-19 had left ‘deep scars on the economy’ and the ‘road to recovery will be long … But the trajectory is positive, and we must do all we can to hasten the journey’.

‘We simply must find new ways to get businesses investing at the start of 2021 if we are to fast-forward the recovery,’ he told the Guardian.

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‘We have had great news on vaccines this week, but if we are to be masters of our own destiny, we must act decisively to rebuild a better economy.

‘British business is like a coiled spring ready to release ambition and investment. They just need a chance.’

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source https://metro.co.uk/2020/12/10/growth-of-the-uk-economy-slowed-before-national-lockdown-13729533/