ONS: GDP up record 15.5% in Q3

UK gross domestic product (GDP) is estimated to have increased by a record 15.5% over the third quarter of 2020, according to Office for National Statistics (ONS).

However, despite this figure, the level of GDP in the UK is still 9.7% below where it was at the end of 2019.

Moreover, comparing Q3 2019 and Q3 2020, the UK economy has fallen by 9.6%.

Data collected ONS also shows that while output in the services, production and construction sectors increased by record amounts in Q3 2020, the level of output still remains below Q4 2019 levels.

Furthermore, the levels of expenditure remain significantly below the levels recorded before the coronavirus.

ONS outlined that this is as a result of the pickup in business investment being much weaker than private consumption.

Richard Pike, sales and marketing director at Phoebus Software, said: “Today’s GDP figures are unsurprising, and although GDP shows good growth in Q3, it is still at a lower level than pre-COVID.

“Schemes such as “eat out” clearly helped in the first two months, but after that expired we see that the economy in September really slowed down.

“This trend will undoubtedly follow again in October and November, and it remains to be seen if there will be a Christmas boost to consumer spending this year as is usually the case.

“In the longer-term, you cannot take these figures in isolation. Last weeks’ announcement of large increases in benefit claimants and redundancies, coupled with a predicted 2% dip in Q4 GPD (by the Bank of England), really doesn’t bode well for growth in Q1 2021, with or without a vaccination programme commencing.

“With reports coming out that the initial housing market stamp duty spike is now beginning to slow down, Q2 2021 is really looking like a pivotal quarter for economic performance in many areas, which will be indicative of what we can hope for the remainder of next year.”