The economy exceeded expectations by expanding in October, according to data released today.
Following a decline in activity the previous month, which included a bank holiday for the Queen’s funeral, UK plc increased by 0.5%.
Analysts had anticipated a 0.3% decline. However, Chancellor Jeremy Hunt cautioned that there is still a “difficult road ahead” as the nation remains on track towards recession.
The economy contracted by 0.3% in the three months preceding October, according to the Office for National Statistics (ONS).
UK plc rose by 0.5% in a rebound after the previous month’s decline, which included a bank holiday for the Queen’s burial.
Mr. Hunt stated, “High inflation, exacerbated by Putin’s illegal war, is stifling global growth, with the IMF estimating that one-third of the global economy will be in recession this year or next.
While today’s numbers indicate modest growth, I must be honest and say that the road ahead is arduous. We are susceptible to the repercussions of Covid-19, Putin’s conflict, and high global gas costs, just like the rest of Europe.
Our plan has restored economic stability and will contribute to lowering inflation next year, while laying the groundwork for long-term development through ongoing record investments in new infrastructure, science, and innovation.
Director of economic statistics at the ONS, Darren Morgan, stated, “The economy rebounded in October, recovering from the impact of the extended bank holiday for the state burial.”
GP appointments, A&E attendance, and the Covid-19 autumn booster program all contributed to the sector’s growth during the month of October.
The construction industry has maintained its upward trajectory over the past year and is currently at a record high, with new homebuilding driving growth this month.
‘However, over the course of the last three months as a whole, the economy contracted, with declines in both the manufacturing and service sectors.’
»Contrary to estimates, the economy grew 0.5% in October«