FTSE 100 LIVE: Huge boost as UK economy soars 15.5% in third quarter COVD fight-back | City & Business | Finance

Gross domestic product (GDP) grew by 15.5 percent in Quarter 3 (July to Sept) 2020 as restrictions on movement eased across June, July, August and September. Quarterly growth captures the average level of output in July to September relative to the average in April to June.

Chancellor Rishi Sunak warned growth is expected to get worse: “Today’s figures show that our economy was recovering over the Summer, but started to slow going into Autumn.

“The steps we’ve had to take since to halt the spread of the virus mean growth has likely slowed further since then.

But there are reasons to be cautiously optimistic on the health side – including promising news on tests and vaccines.

“My economic priority continues to be jobs – that’s why we extended furlough through to March and I welcome the news today that nearly 20,000 new roles for young people have been created through our Kickstart scheme.

“There are still hard times ahead, but we will continue to support people through this and ensure nobody is left without hope or opportunity.”

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7.30am update: Rishi Sunak warns growth is expected to get worse

The Chancellor said: “Today’s figures show that our economy was recovering over the Summer, but started to slow going into Autumn.

“The steps we’ve had to take since to halt the spread of the virus mean growth has likely slowed further since then.

But there are reasons to be cautiously optimistic on the health side – including promising news on tests and vaccines.

“My economic priority continues to be jobs – that’s why we extended furlough through to March and I welcome the news today that nearly 20,000 new roles for young people have been created through our Kickstart scheme.

“There are still hard times ahead, but we will continue to support people through this and ensure nobody is left without hope or opportunity.”

7.20am update: Expert says economy still well below pre-pandemic peak

Jonathan Athow, deputy National Statistician for Economic Statistics said: “While all main sectors of the economy continued to recover, the rate of growth slowed again with the economy still remaining well below its pre-pandemic peak.

“The return of children to school boosted activity in the education sector.

“Housebuilding also continued to recover, while business strengthened for lawyers and accountants after a poor August.

“However, pubs and restaurants saw less business after the ‘eat out to help out’ schemed ended, and accommodation saw less business after a successful summer.”

7.10am update: Britain’s GDP grew by 1.1 percent in September

According to latest figures from the Office of Natianal Statistics, the GDP grew 1.1 percent in September but remains 8.2 percent below its February peak.

ONS reported services grew 1.0 percent (8.8 percent below Feb), the manufacturing industry grew by 0.2 percent (8.1 percent below Feb) and construction grew 2.9 percent (7.3 percent below Feb).

They said: “This is the largest quarterly expansion in the UK economy since ONS quarterly records began in 1955.

“However, it is worth noting that this reflects the continued easing of lockdown restrictions in the third quarter as well as some recovery of activity from the steep contraction in April.

“The level of GDP in the UK is still 9.7pc below where it was prior to the pandemic at the end of 2019.

“Compared with the same quarter a year ago, the UK economy fell by 9.6pc.

“The monthly path of GDP in Quarter 3 2020 reveals that there has been a slowdown of growth in August and September as momentum has eased through the quarter.

“GDP increased by 6.3pc in July, driven by accommodation and food services as lockdown restrictions were eased.”

6.46am update: Coronavirus to hit 2020 Wall Street bonuses

Wall Street workers should expect lower bonuses this year due to the COVID-19 pandemic according to compensation firm Johnson Associates Inc.

The company predicts retail and commercial bankers will see their year-end incentive pay fall by between 25-30 percent.

Johnson Associates Inc managing director Alan Johnson said: “The pandemic is wreaking havoc on many parts of the U.S. economy this year, and the financial services industry is no exception.”

 

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