LONDON: Britain’s economy rebounded in October a little more strongly than expected from September when output was affected by a one-off public holiday to mark the funeral of Queen Elizabeth, but a recession remained on the cards, official data showed on Monday.
Gross domestic product grew by 0.5% after September’s 0.6% contraction, the Office for National Statistics said.
A poll of economists had pointed to a 0.4% bounce-back. The figures are unlikely to change the view among investors and analysts that Britain’s economy faces a bleak 2023. British financial markets showed no reaction to the figures.
“Despite October’s growth, it would take a significant turnaround in policymaking and/or global conditions to change the downward British economic trajectory,” George Lagarias, chief economist at auditing form Mazars, said.
Responding to the data, finance minister Jeremy Hunt said there was 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,” he said.
In the three months to October, Britain’s economy shrank by 0.3%, a smaller fall than a median forecast for a 0.4% contraction in the poll but the biggest drop since early 2021 when the country was under tight coronavirus restrictions.
