UK economic growth slows as supply problems hit recovery: ONS

The level of quarterly GDP is now 2.1 per cent below where it was before the pandemic during Q4 2019.

In Q3 2021, household consumption made the largest contribution to expenditure; there was a fall in underlying inventories, likely reflecting some of the recent supply chain challenges, and a negative contribution from net trade.

Revised estimates show GDP fell in July by 0.2 per cent and saw a modest pickup in August (0.2 per cent). There was more of a rebound in September (0.6 per cent), driven by services output growth (0.7 per cent), as human health activities increased strongly.

Nominal GDP rose by 1.4 per cent in Q3 2021 and is now 3.2 per cent above its Q4 2019 levels, ONS said on its website.

France and Italy had the largest increases in the third quarter of 2021, reflecting the reopening of the economies and easing of restrictions. However, these two countries have yet to recover to their pre-pandemic levels of GDP. The United States is the only G7 economy to have recovered to above pre-pandemic levels.

ALCHEMPro News Desk (DS)