UK economy returns to growth as GDP rises 0.5% in October

theguardian.com:

Britain’s economy returned to growth in October despite concerns over a lengthy recession, as activity bounced back from the impact of the additional bank holiday for the state funeral of Queen Elizabeth II.

The Office for National Statistics said gross domestic product (GDP) rose by 0.5% on the month, after a decline of 0.6% in September when many businesses closed their doors during the national mourning period.

Car sales rebounded after a poor month amid a wider recovery in the country’s dominant service sector, while there was strong growth in activity in the health sector amid a rise in GP appointments, A&E attendance and the Covid-19 autumn booster campaign.

Construction continued a strong run, driven up by housebuilding, while manufacturing output grew.

However, GDP shrank by 0.3% in the three months to October, reflecting concerns over the strength of the economy as consumers and businesses tightened their belts amid the highest rates of inflation for 41 years.

The Bank of England said last month the economy was probably already in a recession that could last until the end of 2023, after GDP fell by 0.2% in the three months to September. Despite a recovery in October, a return to contraction in November and December could spell a second consecutive quarter of decline – the technical definition of a recession.

Jeremy Hunt, the chancellor, said high inflation was slowing economic growth across the world, and the International Monetary Fund had forecast a third of the world economy will be in recession this year or next.

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“While today’s figures show some growth, I want to be honest that