Economic recovery slowed in October as UK GDP hit 0.4 per cent
The UK’s economic recovery ground to a halt in October as lockdown restrictions tightened and the hospitality industry took a hit.
GDP rose 0.4 per cent in October according to the latest Office for National Statistics (ONS) statistics, down from a 1.1 per cent growth in September.
It is the sixth consecutive monthly increase in GDP following a record fall of 19.5 per cent in April after the introduction of lockdown restrictions.
The services sector grew by 0.2 per cent, production by 1.3 per cent and construction by 1.0 per cent in Octobe.
“The reintroduction of some (lockdown) restrictions saw services growth hit, with large falls in hospitality, meaning the economy overall grew only modestly,” ONS deputy national statistician Jonathan Athow said.
GDP is 23.4 per cent higher than its April low but it remains 7.9 per cnet lower than pre-pandemic levels.
“October’s slowdown is likely to be followed by a significant contraction in economic activity in November as the effects of the second coronavirus lockdown are felt, despite the prospect of a temporary boost from Brexit stockpiling,” said the British Chambers of Commerce’s head of economics Suren Thiru.
“While a vaccine offers real hope, failure to avoid a disorderly end to the transition period or further lockdown restrictions before a mass vaccine rollout is achieved would severely drag on any economic recovery.
The OECD recently predicted that the UK’s economic recovery would be the weakest globally, bar Argentina, in part due to the high number of coronavirus cases and the prospect of a no-deal Brexit.