UK economic recovery slowed to 1.3% in third quarter, but recovered in September – business live

Labyrinthine Covid Reminder System Is The Real Reason For The Delays

“Although monthly output rebounded in the quarter from the July contraction, this more likely reflects a temporary boost from the easing of restrictions, rather than a significant improvement in the underlying growth path from the United Kingdom.
“Hospitality, arts and recreation and health saw the most significant improvements as the easing of social distancing restrictions lifted activity. In contrast, production in the construction sector declined in the third quarter as severe supply chain disruptions weakened its ability to fill orders.
“Business investment remains disappointing from pre-pandemic levels, after rising slightly in the quarter and as such remains the black spot of the recovery, limiting the UK’s ability to expand its productivity and generate a sustainably high economy with wages.
“The slowdown in the third quarter will likely mark the start of a prolonged period of sluggish growth, as staff shortages, supply chain disruptions and soaring inflation increasingly stifle economic output.
“Therefore, on a quarterly basis, the UK economy is unlikely to return to its pre-pandemic level until next year, behind many of our international competitors.
“With the headwinds facing the UK economy, we would like to warn the Bank of England against raising interest rates in the short term to avoid destabilizing an already fragile recovery. ”


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