UK economic growth slows as supply problems hit the recovery

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UK economic growth slowed between July and September as supply chain problems hindered the recovery, the latest official figures show.

The Office for National Statistics said consumer spending increased as Britain continued to emerge from lockdown.

But that was offset by falls in other areas of the economy, leaving growth for the three months of 1.3%.

It means the economy is 2.1% smaller than in the final three months of 2019 before the coronavirus pandemic hit.

Grant Fitzner, ONS chief economist, said service growth expanded, helped by house buyers rushing to do deals before the end of the stamp duty holiday.

“However, these were partially offset by falls in both the manufacture and sale of cars.

“Notably, business investment remained well down on pre-pandemic levels in the three months to September,” he said.

Growth slowed significantly from a 5.5% rise recorded between April and June when many Covid restrictions were lifted.

On a monthly basis, the economy expanded by 0.6% in September, the ONS said.

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