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Daily Mirror
Daily Mirror
Business
James Andrews

Record growth for UK economy as lockdown eased - but it's still 9.6% lower than last year

The UK economy grew by a record 15.5% in between July and September as the country emerged from lockdown.

But that still wasn't enough to make up everything that has been lost, with GDP some 9.6% lower than a year earlier, the Office for National Statistics has said.

Worse, on an international scale, the UK recovery is worse than those of France, Italy, Spain, Germany and the USA.

Jonathan Athow, deputy national statistician at the Office for National Statistics (ONS), said: "While all main sectors of the economy continued to recover, the rate of growth slowed again with the economy still remaining well below its pre-pandemic peak.

"The return of children to school boosted activity in the education sector.

"Housebuilding also continued to recover while business strengthened for lawyers and accountants after a poor August.

"However, pubs and restaurants saw less business after the 'eat out to help out' scheme ended, and accommodation saw less business after a successful summer."

Lifting of lockdown saw the economy jump (Getty Images)

The soaring 15.5% growth from July to September follows two consecutive quarters where output fell.

It's the largest three-month rise since ONS records began in 1955.

But it still leaves the economy 9.7% below where it was before the pandemic and 9.6% down on the same period last year.

Chancellor Rishi Sunak said: "Today's figures show that our economy was recovering over the summer, but started to slow going into autumn.

"The steps we've had to take since to halt the spread of the virus mean growth has likely slowed further since then.

"But there are reasons to be cautiously optimistic on the health side - including promising news on tests and vaccines."

He added: "There are still hard times ahead, but we will continue to support people through this and ensure nobody is left without hope or opportunity."

Laith Khalaf, financial analyst at AJ Bell, said: “A strong rebound in the economy is clearly positive, but we should keep the champagne on ice for now.

"The summer boom was turbo-charged by the Eat Out to Help Out scheme, while the furlough scheme worked its magic by keeping unemployment under wraps.

But if you shut down an economy and then open it up, it’s not hugely surprising that you get a huge seesaw effect in quarterly GDP numbers."

He added: “The real litmus test for the economy is how soon it can return to pre-pandemic levels.

"News of a potential vaccine makes the climb back look a lot less daunting, not only because it offers the prospect of a brighter future, but also because it gives businesses and individuals greater confidence in the here and now."

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