UK GDP skyrocketed 15.5% in the third quarter, reaching record-breaking third quarter growth.
According to the National Bureau of Statistics, growth is the largest quarterly growth ever recorded.
Despite record growth, GDP is still missing out on expectations, 9.7% less than before the pandemic.
The economic surge follows a massive slump of 19.8% in June, following new restrictions.
The economy has grown for the fifth consecutive month, but there are still ways to go.
ONS said: However, it remains 8.2% below the level seen in February 2020, before the full impact of the coronavirus (Covid-19) pandemic. ”
During the July-September period, the services sector increased by 14.2%, production increased by 14.3%, and construction output increased by 41.7%.
Powered Now CEO Ben Dyer commented on how UK construction will be carried over the winter.
“The economic recovery we saw in this morning’s announcement is really welcome, but of course, this month, this month and the following winter season has more challenges, of course, in many of the UK, which is in the state of national lockdown in November. That’s why it’s wise to look to the open sector, such as construction and trading, and provides the stability needed at the moment.
“The new restrictions have had a negligible impact on the construction sector up until now, and we need to welcome the overall construction activity. Given the jackpots that house builders are currently experiencing from stamp duty cuts, it’s no surprise that they are the best performing sector in the construction industry. It’s unclear whether the bust will continue after this housing industry boom. At this point, most companies are grateful for the good business they are getting right now given how much other sectors are struggling,” he added.
In response to the latest GDP figures, Prime Minister Rishi Sunak said:
“Today’s numbers show that our economy was recovering in the summer, but it started to slow down until autumn. The steps we had to take to stop the spread of the virus are likely to be even slower since then.
“However, there are reasons to be careful and optimistic about health, including promising news about testing and vaccines. My financial priorities continue to be work. That’s why we extended it until March. Today, we welcome the news that nearly 20,000 new roles for young people have been created through the kickstart scheme.
“There will be times that will continue to be difficult, but through this we will continue to support people and ensure no one is left without hope or opportunity,” he added.
The International Monetary Fund predicts a slump of 10.4% in UK GDP in 2020. They forecast 5.7% growth in 2021.
Worker Prime Minister Shadow Annelies Dodds shared concerns about the numbers. Speaking to Sky News, Dodds said there was fear that GDP could shrink this quarter. She said:
“There are concerns that we can see the shift backwards due to the ongoing lockdown.
“This really shows that governments need to grasp issues that are driving economic decline, particularly the public health crisis, and organize testing, tracing and quarantine.
“But make sure there’s a long-term horizon for financial support. It really helps to bring more confidence.”
