UK economy continues to grow but recovery slowed by supply chain crisis

THE UK economy grew 0.6% in September but the supply chain crisis slowed its pandemic recovery, according to the latest statistics.

The Office for National Statistics said gross domestic product (GDP) growth accelerated from the previous month, when it grew by 2%.

However, between July and September the UK's economic growth slowed sharply to 1.3%, down from 5.5% in the previous three months.

The ONS revised down its growth estimates for August, from 0.4% to 0.2%, as the supply chain crisis took its toll.

Shoppers have spotted gaps on shelves due to the crisis, caused by a lack of lorry drivers, Covid, not enough workers and soaring demand for goods.

Car sales, in particular, have been hit by a shortage of semi conductor chips, according to the ONS.

GDP remains 0.6% below its pre-Covid level, recorded in February 2020.

Growth in September was boosted by the health sector, as more people had face-to-face appointments with their doctors.

Activity in the legal profession also helped as lawyers raced to help house buyers complete transactions before the stamp duty holiday ended.

However, a drop in car sales and manufacturing dented the economy's growth in September.

Grant Fitzner, chief economist at the Office for National Statistics, said: "Growth picked up in September and the UK economy is now only slightly below pre-pandemic levels.

"This latest increase was led by the health sector, boosted by more visits to GP surgeries in England.

"Lawyers also had a busy month as house buyers rushed to complete purchases before the end of the stamp duty holiday.

"However, these were partially offset by falls in both the manufacture and sale of cars.

"Notably, business investment remained well down on pre-pandemic levels in the three months to September."

 

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