UK: recovery stalling before winter winds
- GDP growth slowed further in August to only 2.1% m-o-m, which was under half the expected rate. Such sequential slowing reinforces my view that the recovery is staling well before it recovers pre-Covid levels.- The trend towards reimposing restrictions on activity is likely to cause a temporary reversal in the recovery over the winter. A vaccine might be available before Christmas, but it won’t be delivering widespread immunity until months later.
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