The UK economy is finally larger than before the pandemic, after a burst of growth in November… before Omicron hit economy
- UK economy grew by 0.9% in November
- Services, construction and production sectors all grew
- Economy now 0.7% above level in February 2020, on monthly basis
- But omicron hit economy in December
- Google in $1bn deal to buy Central Saint Giles offices in London
The UK’s surge in growth in November has unfortunately been overtaken by the Omicron variant, cautions Alpesh Paleja, CBI lead economist.
Supply chain problems, and the cost of living crisis, are also weighing on growth, Paleja explains:
“While it’s good that economic growth picked up in November, the data has been overtaken by events. Activity is very likely to have taken a hit in December, as the spread of the Omicron variant and subsequent restrictions disrupted operations in certain sectors.
“As we kick off the new year, the near-term outlook is also clouded by additional challenges: shortages of labour – exacerbated by sickness absence, supply chain disruption and a cost of living crunch for households.
“It’s amazing to see the size of the economy back to pre-pandemic levels in November – a testament to the grit and determination of the British people.
“The government is continuing to support the economy, including through grants, loans and tax reliefs for businesses, and our Plan for Jobs is ensuring people up and down the country have fantastic opportunities.
