The UK economy grew by 0.9% in November, a rise that saw it recover all of its pandemic losses and offered hope that a further bounce back this year is on the cards. The ONS said GDP should beat pre-pandemic levels for the fourth quarter as a whole, provided output didn’t fall by 0.2% or more in December. However, those figures relate to a period before Omicron led to fresh working from home orders and wider consumer caution.
City economists expect that GDP in December fell at least a little bit, while inflation and cost of living squeezes might make January and February sluggish. Businesses say labour shortages and staff sickness are proving disruptive. April tax rises are also likely to prove problematic, and there is pressure on Chancellor Rishi Sunak to delay them.
The ONS recorded an increase for services (0.7%), production (1.0%) and construction (3.5%) between October and November 2021. This means that services and construction output are both 1.3% above their pre-coronavirus levels while production remains 2.6% below.
Sunak said: “It’s amazing to see the size of the economy back to pre-pandemic levels in November - a testament to the grit and determination of the British people.” ONS chief economist Grant Fitzner said: “The economy grew strongly in the month before Omicron struck with architects, retailers, couriers and accountants having a bumper month. Construction also recovered from several weak months, as many raw materials became easier to get hold of.”
