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Gross home product progress for the July-September interval in contrast with output of 5.5 % within the second quarter, the Workplace for Nationwide Statistics (ONS) stated in a press release.
“Because the world reopens we all know that there are nonetheless challenges to beat,” finance minister Rishi Sunak stated in response.
Regardless of the sharp progress slowdown within the third quarter, the chancellor of the exchequer added that the UK was “forecast to have the quickest progress within the G7 this yr”.
The ONS added that the UK economic system was nonetheless 2.1 % beneath its stage earlier than the outbreak of the coronavirus pandemic on the finish of 2019.
The economic system contracted 0.2 % in July earlier than rebounding in August and September, it stated.
ONS chief economist Grant Fitzner stated “enterprise funding remained properly down on pre-pandemic ranges” within the third quarter.
He added that the commerce deficit widened as exports of products to international locations outdoors the European Union fell and imports, notably of gasoline, elevated.
As international locations reopen from pandemic lockdowns, corporations are struggling to satisfy demand for items and companies, sending inflation hovering.
“A mixture of rising Covid instances and shortages of uncooked supplies, parts and labour got here collectively to current important headwinds to progress,” Alpesh Paleja, lead economist on the CBI, Britain’s primary enterprise foyer group, stated following Thursday’s information.
“It is encouraging that the economic system maintained some momentum in September however there is not any denying that this rounded off a troublesome quarter for companies, with provide constraints biting onerous,” he added.
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