UK economy rebounds from recession with record growth
According to the Office for National Statistics (ONS), the country's economy is still 8.2% smaller than before the Covid-19 hit.
The news comes after the UK economy slipped into its first technical recession since 2009 after suffering its biggest slump on record as a knock-on effect of Covid-19 lockdown measures.
The economy shrank by 20.4% versus the first three months of the year during April, May and June as a result of factors including a drop-off in household spending in shops and hospitality venues, which were ordered to close, and factory shutdowns yielding the slowest car production since 1954.
While growth of 1.1% recorded in September marked the economy’s fifth consecutive month of expansion, it represented a slower pace than that seen in previous months.
"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," Jonathan Athow, deputy national statistician for economic statistics at the ONS, explained.
"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."
It has been speculated that Chancellor Rishi Sunak is considering a Winter Eat Out to Help Out scheme to encourage consumers spending after the second lockdown.
News of the UK’s economic bounce back comes after redundancies reached a record high in the three months to September as hospitality bore the brunt of pandemic pressure.
The UK’s unemployment rate rose to 4.8%, its highest level since November 2016, according to the Office for National Statistics (ONS).
Prime Minister Boris Johnson recently reiterated that current national lockdown restrictions will wrap on 2 December as planned and will be replaced by a return to a tiered system of Covid restrictions.
