UK economic growth in Q3 slower than first thought

The UK’s economic recovery slowed down by more than previously estimated between July and September, according to revised figures.

The data from the Office for National Statistics (ONS) pre-dates the emergence of the Omicron variant of Covid-19, which is expected to result in a further setback.

Gross domestic product (GDP) is now believed to have risen by 1.1% in the third quarter, down from an earlier estimate of 1.3%.

However, the data revisions also show that the economy is closer to pre-pandemic levels than first estimated.

Last year’s economic slump has now been estimated at 9.4% — still the biggest decline in 99 years but smaller than the previously estimated 9.7%.

This means that by the end of September the economy was 1.5% smaller than at the end of 2019, rather than 2.1%.

Elsewhere, the report showed that with the economy opening back up in the third quarter, households increased spending on restaurants & hotels, transport and recreation & culture. Despite this increase, household saving was still up on pre-pandemic levels.

The third quarter figures also show a decrease of 8.8% in goods exports and a 2.5% contraction in business investment.