The UK economy is finally larger than before the pandemic, after a burst of growth in November… before Omicron hit economy
UK economy grew by 0.9% in November
ONS: Economy grew strongly, before Omicron struck
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The hit from Omicron may mean the UK economy temporarily falls back below its pre-pandemic levels in January.
Paul Dales, chief UK economist at Capital Economics, says November’s 0.9% growth was impressive, as the economy gained momentum…. but has taken a knock since.
The increase was mostly due to a 1.1% m/m rise in manufacturing output, a 3.5% m/m leap in construction output and a 2.5% m/m gain in professional/scientific activities.
It seems that an easing in shortages contributed to the first two, with car output rising by 7.8% m/m and construction materials reportedly easier to source (although the unusually dry weather probably helped too). And the rise in the third was apparently due to architectural/engineering activities being brought forward from December.
Administrative and support service activities, human health and social work activities and transport and storage were the three largest contributors to the services sector growth.
