11 Nov 2021
0.6% September Growth Recorded for UK Economy
The Index Today
UK’s economy grew 0.6% in September after months of slow economic growth led by rising covid rates. The previously calculated figures were lower, hence affecting the overall GDP by 0.6%.
The newly released shows how the economy is being affected by the supply chain issues around the globe and the slowing of post-lockdown business activity. According to the Office of National Statistics, the GDP for July fell by 0.2% whereas August’s growth was at 0.2%. The country’s trade level in goods went into a 9 billion pound deficit amounting to 42.3 billion pounds.
Suren Thiru, head of economics at the British Chambers of Commerce stated, “Although monthly output rebounded trough the quarter from July’s contraction this is more likely to reflect a temporary boost from restrictions easing, rather than a meaningful improvement.”
Industrial output saw a decline of 0.4% due to slower gas supplies. As a whole, the growth for the third quarter has been recorded at 1.3% where economist initially forecasted growth of 1.5%. The bounce from the lockdown has begun to slow down with rising infection cases and labor shortage. The Bank of England has said it plans to keep interest rates the same for now and will closely watch the labour market as the job protection scheme comes to an end.