Economy grew by 0.4% in October - but remains 7.9% below pre-pandemic levels

10 December 2020, 07:23 | Updated: 10 December 2020, 07:59

The UK economy grew by 0.4% month-on-month in October but still remains 7.9% below pre-pandemic levels, official figures have shown.

The Office for National Statistics (ONS) said the economy has now grown for six months running, recovering by 23.4% since the nadir of the recession during the spring lockdown.

But gross domestic product (GDP) has still not fully made up the mammoth 25.3% fall seen during the first and second quarters of 2020.

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Experts also expect GDP to go back into reverse in the final quarter after the impact of the second national lockdown in England.

Chancellor Rishi Sunak acknowledged people would be "worried" about the coming winter months following the latest figures on the health of the economy.

He said: "Our unprecedented package of support has protected more than 12 million jobs and millions of businesses across the UK - and we have provided the NHS with all the resources needed to halt the spread of the virus, including £6 billion to ensure the UK was the first country in the world to roll out a vaccine.

"I know people are worried about the winter months but we will continue to support people through our Plan for Jobs to ensure nobody is left without hope or opportunity."

Jonathan Athow, deputy national statistician at the ONS, said: "The UK economy has now grown for six months running but still remains around 8% below its pre-pandemic peak.

"Public services output increased, while car manufacturing continued to recover and retail again grew strongly.

"However, the reintroduction of some restrictions saw services growth hit, with large falls in hospitality, meaning the economy overall grew only modestly."

More to follow...