The UK’s economic recovery has slowed down amid rising Covid rates and global supply issues.

In the three months to September, the economy expanded 1.3%, which is 2.1% lower than pre-pandemic rates.

The was a 0.3% fall in manufacturing output, whilst construction was down 1.5%.

“Growth picked up in September and the UK economy is now only slightly below pre-pandemic levels,” said ONS chief economist, Grant Fitzner.

“This latest increase was led by the health sector, boosted by more visits to GP surgeries in England. Lawyers also had a busy month as house buyers rushed to complete purchases before the end of the stamp duty holiday. However, these were partially offset by falls in both the manufacture and sale of cars.

“Notably, business investment remained well down on pre-pandemic levels in the three months to September. Meanwhile the trade deficit widened as goods exports to non-EU countries fell and imports – particularly of fuel – from non-EU countries increased.”

Commenting on the latest GDP figures, Danni Hewson, AJ Bell financial analyst, said: “The hope had been that once all covid restrictions were firmly in the rear-view mirror the economic engine would be revved and ready but while the economy did grow between July and September that growth slowed considerably.”

“Momentum was undoubtedly lost from the double drag on staff and supply shortages, remember the ‘pingdemic’ and the havoc that created.  One of those drags has been largely dealt with, though there are still sectors struggling to find the staff they need, however its important to note that supply chain constraints have already led to many sectors running down their inventories and stock levels are a far cry for where they would normally be in the run-up to Christmas. 

“Certainly, September’s story was a more optimistic one than that told by July and August. More people were flying, going to the theatre, seeing their doctor in person – all actions that boosted output from the service sector, as did a last-minute rush to complete all those home sales before the final end of the stamp duty holiday.  Construction also enjoyed a welcome bounce back with an increase in maintenance work on schools and offices.”

Asos has announced growth plans, where the retailer will target £7bn worth of sales over the next 3-4 years.

The move aims to achieve a compound annual growth rate of 15-20% and double its size in the UK and US. Asos also said it will embark on cost-saving efforts worth £50m-£100m.

Following the announcements, the group’s shares remained flat.

Commenting on the news, Laura Hoy, equity analyst at Hargreaves Lansdown, said: “ASOS the fast fashion darling has lost its spot in the limelight and its attempt to show how it plans to take a leading role again have fallen flat.”

‘It sought to restore investor confidence with a £7bn revenue target over the next 3 to 4 years. To get there the group will double its US and UK businesses and expand its own-brand offerings. However it’s a focus on increasing partner fulfilment that holds the key to longer-term success.”

“The market was decidedly apathetic about ASOS’ grand plans. Although the growth targets are ambitious, it’s hard to get excited about online retailers these days. They’ve enjoyed goldilocks conditions over the past 18 months and a return to normalcy means higher return rates and less incentive to shop online. Add that to supply chain woes and it’s a recipe for near-term volatility.”

Rising revenues at Halfords has led to the group raising its profit guidance for the full year.

Full-year profits are expected to be in the £80-90m region, increasing from previous forecasts of £75m.

New growth in profits is from increased demand at autocentres and cycling divisions. Demand for autocentres have seen increase in revenues by 88% compared to 2020, whilst cycling revenues have increased by 8%.

“There is good momentum in our existing business, the strategically important area of motoring services continues to grow strongly, and our recent acquisitions are all performing well,” said chief executive, Graham Stapleton.

“As a result, despite the challenging trading environment, I am very excited about our future growth prospects.”

Shares in Halfords soared 11% to 311.60 this morning at 0850GMT.

ITV is set to celebrate its highest advertising revenue in history thanks to the Euros and post-pandemic recovery.

Revenue for the first nine months of the year is up 30% to £1.3bn. The group said total advertising revenue for the full year is expected to jump 24% to reach an all time high.

Carolyn McCall, the chief executive of ITV, said: “By any standards ITV has had an outstanding nine months. Both our Studios and Media & Entertainment (M&E) businesses have performed very strongly. Revenue from each business over the nine months is up both on last year and on 2019. This drove total external revenue up 28% compared to 2020 and 8% higher than 2019.

“We are becoming an increasingly scaled digital business. Our online viewing was up 39% in the nine months which, together with the roll out of Planet V, helped our video on demand advertising (AVOD) revenue to climb 54%. Our monthly active users now stand at 9.6 million, a 22% increase year on year.”

“With the combination of Broadcast and ITV Hub’s mass simultaneous reach, our brand safe addressable advertising product and the strong economy, 2021 looks set to have the highest advertising revenue in ITV’s history, despite the lockdown in Q1.”

AJ Bell investment director Russ Mould commented: “There was always going to be plenty of growth for ITV in 2021 given the comparison with a pandemic disrupted 2020 but for the business to be on course for the highest advertising revenue in its history is an impressive achievement.”

“It underlines the continued relevance of television as a medium to advertisers given its reach and its arguably greater degree of safety compared with digital advertising.”