UK Economy Back To Pre-pandemic Levels In November

The UK economy surpassed its pre-pandemic level for the first time in November after growing by 0.9% over the month, partly driven by an unexpected surge in early Christmas shopping.

The Office for National Statistics (ONS) said a jump in restaurant bookings and a rapid turnaround in construction output were also behind the growth that took the size of the economy 0.7% above its level before March 2020.

City economists had expected an expansion of only 0.4% and warned that November was likely to prove a high point in 2020, with the figures collected by the ONS coming shortly before the Omicron variant took hold, exacerbating worker shortages as thousands were off sick, and forcing the government to introduce plan B restrictions.

It followed growth of 0.2% in October.

The continuing increase in health services as a proportion of economic activity was another factor supporting the rise in GDP, the ONS said.

Against a backdrop of rising inflation and the threat of further interest rates by the Bank of England, business groups warned the economy remained weak.

Analysts said that while the economy had struggled to grow since the summer, there was the prospect of a return to stronger growth in 2022, albeit with consumer spending constrained by the rising cost of living.

 

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