Photograph courtesy of 401 Calculator
UK economic output rose by 0.8% between July and September according to the latest figures from the Office of National Statistics (ONS).
This growth builds upon the 0.7% growth in the previous quarter, and was a combination of growth in the services, production, and manufacturing industries.
Whilst this growth is positive news, it remains well below the 2.5% growth peak in the first three months of 2008, before the financial collapse.
The labour market was not as badly effected by the 2008 financial crisis and returned to its pre-2008 levels at the start of 2013.
Speaking on the news, prime minister David Cameron said:
GDP figures show our economy has real momentum. We’re on the path to prosperity but there’s a huge amount more to do to secure recovery.
Following similar talking points, chancellor George Osborne also commented:
Today’s GDP figures show that Britain’s hard work is paying off and the country is on the path to prosperity. Many risks remain, but thanks to our economic plan, the recovery now has real momentum. All parts of the economy are growing, the deficit is falling and jobs are being created – and that’s the only sustainable way to raise living standards for hardworking families.
Whilst economic output is increasing and employment levels are strong, living standards continue to fall across the UK with inflation outpacing wage rises, as denoted in the comments by Andrew Hunter, co-founder of Adzuna:
Despite a nominal monthly increase, in real terms the average pay packet has fallen by £1,020 in a year, as the cost of inflation continues to burn a hole in the nation’s pockets. There are also huge regional disparities in the economic race. Since the crash, London and the South East has been driving in a different gear to the rest of the country, and the gap is widening. During the pre-crash boom years, London and the South East was responsible for 37% of the UK’s growth output – but since the 2007 crash, this figure has rocketed to 48%.
