UK Economy Hits Record Growth In July To September

The UK's economy rebounded from recession in July to September, but growth showed signs of slowing down at the end of the 3 months.

Growth of 15.5% from July to September was the biggest on record, said the Office for National Statistics (ONS). It came after a 6 month slump after the first coronavirus lockdown.

The country's economy now stands at 8.2% smaller than before the virus struck.

The economy had shrunk in the first 3 months of the year and then contracted by a record 19.8% in the April-to-June period. Two consecutive three-month periods of contraction are generally defined as a recession.

Despite the rebound, analysts have warned that the economy was likely to shrink again in the final 3 months of the year due to the impact of renewed lockdowns in different parts of the country.

A second lockdown began in England on 5 November and is due to finish on 2 December.

Thomas Pugh, UK economist at Capital Economics, said that in view of what had happened since, the figures felt "not just like old news, but like ancient news".

"We already know that GDP will struggle to rise in October as tighter restrictions were imposed and that it will take a hammering in November as the effects of the second Covid-19 lockdown are felt."

What is happening in the economy?

In September, growth was 1.1%, marking the fifth consecutive month of expansion. However, that was weaker than the levels seen in previous months.

Jonathan Athow, deputy national statistician for economic statistics at the ONS, said all sectors of the economy continued to recover, albeit more slowly.

"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."

The number of people out of work rose by 243,000 in the three-month period, the largest increase since May 2009.