Economic outlook remains bleak despite rise in GDP
Monthly GDP grew by around 0.5% in October 2022, following a 0.6% drop in September, according to the Office for National Statistics (ONS). Despite the recovery in monthly figures, the UK economy nevertheless contracted by 0.3% in the three months to October.
The rise in GDP in October follows a 0.6% fall in September, which “was affected by the additional bank holiday for the State Funeral of HM Queen Elizabeth II”, according to the ONS.
October saw the services sector grow by 0.6% after falling by 0.8% in September, largely driven by a 1.9% rise in the wholesale and retail trade including the repair of motor vehicles and motorcycles.
Meanwhile, output in consumer-facing services grew by 1.2% in October – but only after falling by 1.7% in September and 1.6% in August.
Commenting on the figures, economics director at the Institute of Chartered Accountants in England and Wales (ICAEW), Suren Thiru said:
“October’s rebound is a false dawn for the economy, as it mostly reflects the favourable comparison with September.
“The positive start to the fourth quarter may not prevent recession with the growing squeeze on incomes likely to drive falls in GDP in November and December.”
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