Retail activity bolsters small bump in growth

12th December 2022 | Jack Oliver

Retail and wholesale recovery in October has helped the economy see a return to growth, however economists still anticipate a recession.

Early figures from the Office of National Statistics reported growth of 0.5%, an improvement on the fall of 0.6% in September.

Experts believe this will be the last showing of growth in some time.

Businesses were hurt in September by closures relating to the death of HM Queen Elizabeth II and the subsequent funeral.

It is believed that this small increase in growth is simply a reflection of working hours returning to normal.

The war in Ukraine has contributed to high levels of inflation, currently at a 41-year high of 11.1%. This has led to decreased consumer spending as well as a reduction in borrowing rates, all-in-all leading to a weaker economy.

The figures for November, which are due on Wednesday, are expected to reveal inflation rates of 10.9% for the year.

The chancellor, Jeremy Hunt, said: “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.”


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