This growth set a record for UK GDP, as the economy recovered from the first national lockdown this year - but it still remains 9.7% smaller than at the start of the year before the pandemic took hold in the United Kingdom.
The ONS data also shows that UK GDP grew by 1.1% in September 2020; below the anticipated 1.5%, but marking five consecutive months of growth after a sharp fall in April.
Richard Pearson, director at investment platform EQi, comments:
“Today’s figures come as no great surprise. September enjoyed the remaining fruits of the Eat Out To Help Out scheme, which undoubtedly provided some buoyancy to economic growth.
“However, with the second lockdown in full swing now, and a surging unemployment rate, we are on a slow march through a long winter. In what should be the busiest shopping season, we are met with shuttered high streets across the country and an impending hit to the GDP on the horizon, igniting fears of a ‘W’ shaped recovery.
“One glimmer of hope that may provide unexpected confidence in the coming months is the success of the vaccine. If this promise is upheld, the trajectory of our economic recovery could change for the better, but even the suggestion seems to be having an effect already.”
Dr Kemar Whyte, senior economist at NIESR, said of the figures:
“Today’s ONS data suggest that the recovery from the first phase of the pandemic was already slowing by the end of the third quarter, with output remaining 8.2 per cent below pre-pandemic levels in September. Growth in the fourth quarter will be much slower than in the third quarter and is likely to turn negative, thanks to stagnation in October and a second lockdown in England from November.”
