Economy defies expectations by GROWING 0.5% in October

Glimmer of hope as economy defies expectations by GROWING 0.5% in October in bounceback after Queen’s funeral… but Jeremy Hunt warns of ‘tough road ahead’ with country still on track for recession

The economy defied expectations by growing in October, new figures showed today.

UK plc grew by 0.5 per cent in a bounceback after a fall in activity the previous month – which included a bank holiday for the Queen’s funeral.

Analysts had pencilled in a 0.3 per cent dip. However, Chancellor Jeremy Hunt warned there is still a ‘tough road ahead’ with the country still on track for recession.

In the three months to October the economy shrank by 0.3 per cent, according to the Office for National Statistics (ONS). 

UK plc grew by 0.5 per cent in a bounceback after a fall in activity the previous month – which included a bank holiday for the Queen’s funeral

Mr Hunt said: ‘High inflation, exacerbated by Putin’s illegal war, is slowing growth across the world, with the IMF predicting a third of the world economy will be in recession this year or next.

‘While today’s figures show some growth, I want to be honest that there is a tough road ahead. Like the rest of Europe, we are not immune from the aftershocks of Covid-19, Putin’s war and high global gas prices.

‘Our plan has restored economic stability and will help drive down inflation next year, but also lay the foundations for long-term growth through continued record investment in new infrastructure, science and innovation.’

Darren Morgan, ONS director of economic statistics said: ‘The economy bounced back in October, recovering from the impact of the additional bank holiday for the state funeral.

‘In particular, car sales rebounded after a very poor September, while the health sector also saw a strong month, with GP appointments, A&E attendance and the Covid-19 autumn booster campaign all driving up the sector.

‘Construction continued its strong trend over the last year and stands at its highest level on record, with new housebuilding driving growth this month.

‘However, over the last three months as a whole the economy shrank, with falls seen across services and manufacturing.’

Chancellor Jeremy Hunt warned there is still a ‘tough road ahead’ with the country still on track for recession

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