UK economic growth slows as supply problems hit recovery: ONS

16 Nov '21

2 min read

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UK gross domestic product (GDP) is estimated to have rose by 1.3 per cent in the third quarter (Q3) of this year following the continued easing of COVID-19 restrictions, according to the Office of National Statistics. The increase was 5.5 per cent in Q2. In output terms, the largest contributors to this increase were from hospitality, arts and recreation and health following the further easing of restrictions.

The level of quarterly GDP is now 2.1 per cent below where it was before the pandemic during Q4 2019.

In Q3 2021, household consumption made the largest contribution to expenditure; there was a fall in underlying inventories, likely reflecting some of the recent supply chain challenges, and a negative contribution from net trade.

Revised estimates show GDP fell in July by 0.2 per cent and saw a modest pickup in August (0.2 per cent). There was more of a rebound in September (0.6 per cent), driven by services output growth (0.7 per cent), as human health activities increased strongly.

Nominal GDP rose by 1.4 per cent in Q3 2021 and is now 3.2 per cent above its Q4 2019 levels, ONS said on its website.

France and Italy had the largest increases in the third quarter of 2021, reflecting the reopening of the economies and easing of restrictions. However, these two countries have yet to recover to their pre-pandemic levels of GDP. The United States is the only G7 economy to have recovered to above pre-pandemic levels.

Fibre2Fashion News Desk (DS)

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