UK economy returns to growth as GDP rises 0.5% in October | Economic growth (GDP)
Britain’s economy returned to growth in October despite concerns over a long recession, as activity rebounded after the impact of the additional bank holiday for Queen Elizabeth II’s state funeral.
The Office for National Statistics said gross domestic product (GDP) rose 0.5% on the month, following a 0.6% drop in September when many businesses closed during the lockdown period. National mourning.
Car sales rebounded from a lackluster month amid a broader recovery in the country’s dominant service sector, while there was strong growth in activity in the healthcare sector amid an increase in GP appointments, A&E attendance and the Covid-19 fall reminder campaign.
Construction continued to grow strongly, driven by housing construction, while manufacturing output increased.
However, GDP fell 0.3% in the three months to October, reflecting concerns about the strength of the economy as consumers and businesses tightened their belts amid the steepest inflation rates. bred for 41 years.
The Bank of England said last month that the economy was likely already in a recession that could last until the end of 2023, after GDP fell 0.2% in the three months to September. Despite a recovery in October, a return to contraction in November and December could mean a second consecutive quarter of declines – the technical definition of a recession.
Jeremy Hunt, the chancellor, said high inflation was slowing economic growth around the world and the International Monetary Fund had predicted that a third of the global economy would be in recession this year or next.
“While today’s numbers show some growth, I want to be honest there is a tough road ahead. Like the rest of Europe, we are not immune to aftershocks from Covid -19, Putin’s war and high global gas prices,” he said.