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The UK economy grew by just 0.4% in October as the recovery from the coronavirus crisis slowed even before the latest lockdown measures.
Figures from the Office for National Statistics (ONS) showed that GDP expanded for the sixth month in a row, but remained 7.9% below its February pre-pandemic level.
Great Britain experienced its steepest recession ever recorded earlier this year, when coronavirus restrictions crushed economic activity.
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COVID-19: The Economic Virus
Overall, it is expected to reverse again in the current fourth quarter after the rules were tightened again.
The British fiscal watchdog expects a recovery in 2021, but warned that this will be delayed if the Brexit transition period ends without a deal with the EU.
The growth rate in October was lower than the 1.1% in September and was the weakest since the economy began to recover from the depression.
GDP is expected to have contracted again in November, leading the economy into a double dip.
In response to the latest figures, Chancellor Rishi Sunak said: “I know people are worried about the winter months, but we will continue to support people through our Employment Plan to ensure that no one is left without hope or opportunity. “.
The ONS said the October data came in a “context of new national measures” introduced in response to a second wave of COVID-19.
Growth in the service sector, which accounts for four-fifths of economic output, fell to a near stagnant of 0.2% when restrictions that included a 10 p.m. curfew in bars and restaurants came into force. restaurants.
However, manufacturing and construction proved to be more resilient, growing 1.7% and 1%.
Jonathan Athow, ONS deputy national statistician for economic statistics, said that means “the overall economy grew only modestly.”
The Office of Budget Responsibility (OBR) forecast the economy to contract 11.3% this year, its biggest decline in more than 300 years, before growing 5.5% in 2021.
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The state of the UK economy hit by the pandemic
However, the OBR expects a no-deal Brexit hit two percentage points growth, while Bank of England Governor Andrew Bailey believes that the long-term economic impact of such a result it would be bigger than the pandemic.
Ruth Gregory, UK Senior Economist at Capital Economics, said: “The economy continued to grow in October, but at a breakneck pace.
“And with the COVID-19 restrictions likely to remain in place for some time, the economy is still facing a difficult few months.
“But the scope for a decent ‘vaccine rebound’ next year should allow the economy to return to its pre-pandemic level in early 2022.”
