UK economy rebounds to pre-pandemic levels: report

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UK economy rebounds to pre-pandemic levels: report

After a surge in growth in November, the UK economy has recovered to pre-pandemic levels.

In November, the UK GDP went up by 0.9%, according to the Office for National Statistics, as the economy picked up after slowing to just 0.2% in October.

It means the UK's GDP is 0.7% above its February 2020 level, just before the first wave of Covid 19, a milestone in the recovery from the pandemic.

This recovery came just before the Omicron variant hit the UK, causing disruption in December.

The ONS reports that the services, production, and building sectors all expanded in November, while the retail sector saw strong growth.

Services and construction output have increased by 1.3% over pre-coronavirus levels while production remains 2.6% below, as a result of the 0.7% production 1.0% and 3.5% output between October and November 2021.

In the last month, output in consumer-facing services increased by 0.8%, mainly due to a 1.4% increase in retail trade, while all other services rose by 0.6%. Consumer-facing services are still 5.0% below pre-coronavirus levels, while all other services are 2.9% above.

We will pull together more details and reaction now.

China posted a record trade surplus in December and 2021, with exports growing 20.9% year-on-year last month and imports up 19.5%.

Trade data from the UK and the eurozone will show how Covid and Brexit weighed on trading in November.

Consumer confidence and retail sales in the U.S. will highlight if Omicron has hurt the American economy.

European stock markets are set for a lower start after another day of choppy trading on Wall Street. The tech-focused Nasdaq index fell 2.5%, to its lowest level since October.

The financial results of Blackrock, Citi, JP Morgan and Wells Fargo are due to be released on the corporate side.

The March 3 pm GMT: Michigan survey of US consumer sentiment in January.