UK economic growth has been held back as the supply chain crisis hit pandemic recovery, according to the latest statistics.
Gross domestic product growth slowed sharply between July and September to 1.3%, down from 5.5% in the previous three months.
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The supply chain crisis caused shortages at restaurants and shops across the UK and sparked panic buying over shortage fears.
It’s been caused by a lack of lorry drivers, Covid, not enough workers in stores and soaring demand for goods.
Brits have been warned that Christmas could be at risk if the supply chain problems are not solved.
Sainsbury’s was forced to delay its annual toy sale due to stock shortages and Aldi’s Specialbuys have been hit by delays for months.
Meanwhile, families are stocking up for Christmas earlier than ever, meaning shelves could be empty by the time the day arrives.
Petrol was also plagued with problems earlier this year as there were too few HGV drivers to transport the fuel.
This led to queues and panic buying at forecourts across the country.
Car sales, in particular, have been hit by a shortage of semi conductor chips, according to the ONS.
The Office for National Statistics said gross domestic product (GDP) growth accelerated from the previous month, when it grew by 2%.
The ONS revised down its growth estimates for August, from 0.4% to 0.2%, as the supply chain crisis took its toll.
GDP remains 0.6% below its pre-Covid level, recorded in February 2020.
Growth in September was boosted by the health sector, as more people had face-to-face appointments with their doctors.
Activity in the legal profession also helped as lawyers raced to help house buyers complete transactions before the stamp duty holiday ended.
However, a drop in car sales and manufacturing dented the economy’s growth in September.
Grant Fitzner, chief economist at the Office for National Statistics, said: “Growth picked up in September and the UK economy is now only slightly below pre-pandemic levels.
“This latest increase was led by the health sector, boosted by more visits to GP surgeries in England.
“Lawyers also had a busy month as house buyers rushed to complete purchases 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.”
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