Precise Investors

Saturday, December 10, 2022
Latest News

UK economy grows slower than expected

UK economy

The ONS said important sectors of the economy were still considerably smaller

The UK economy continued its recovery in August, growing by 2.1%, as the Eat Out to Help Out scheme boosted restaurants. But the figure was below expectations and the economy is still 9.2% smaller than before the pandemic struck.

It marked the fourth consecutive month of expansion following the slump induced by the coronavirus lockdown. However, growth in August was slower than the 8.7% expansion seen in June and the 6.6% rise in July.

Analysts said the coming months were likely to see growth slackening further amid new Covid restrictions and concern over a no-deal Brexit.

The Office for National Statistics (ONS) said important sectors of the economy, such as services and construction, were still considerably smaller than in February.

The economy continued to recover in August but by less than in recent months, said Jonathan Athow, the ONS deputy national statistician for economic statistics.

He said, there was strong growth in restaurants and accommodation due to the easing of lockdown rules, the Eat Out to Help Out scheme and people choosing summer ‘staycations’. However, many other parts of the service sector recorded muted growth.

Construction also continued its recovery, with a significant boost from housebuilding, Athow said.

He added that there was “limited growth” in manufacturing, with car and aircraft production still much lower than the start of the year.

So much for the V-shaped recovery, said Jeremy Thomson-Cook, chief economist at Equals Money, referring to optimistic forecasts of a swift rebound in growth.

Services, manufacturing and construction all declined in August from the previous month’s measure, a sure-fire sign that the initial figures which suggested a double-digit growth recovery were actually more a function of just how much growth had fallen during the wider lockdown, he said.

Right now, the UK economy has little to no momentum, he said, adding that the road to recovery was going to be “a long and slow one”.


The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply