The economy slowed in the third quarter as consumer spending weakened and supply chain issues continued.

Latest data from the Office for National Statistics showed that in September, GDP was about 0.6% below its level in February 2020, pre-Covid.

Overall the economy grew by 1.3% in the three months to September, leaving it 2.1% smaller than at the end of 2019.

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

"The latest data confirms that the UK's economic recovery lost momentum in the third quarter as significant staff and supply shortages limited activity.

"Although monthly output rebounded through the quarter from July's contraction this is more likely to reflect a temporary boost from restrictions easing, rather than a meaningful improvement in the UK's underlying growth trajectory.

"Hospitality, arts and recreation, and health recorded the strongest improvements as the easing of social distancing restrictions lifted activity. In contrast, construction output declined as severe supply chain disruption weakened its ability to complete orders.

"The third quarter slowdown is likely to be the start of a sustained period of sluggish growth as staff shortages, supply chain disruption and surging inflation increasingly stifles economic output."

Grant Fitzner, ONS Chief Economist, said growth picked up in September, led by the health sector, with 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. But these were offset in part by falls in both the manufacture and sale of cars.

He said: "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."

Kitty Ussher, Chief Economist at the Institute of Directors, said: "On the surface, September felt very different to the summer months with a plummeting of consumer confidence, petrol panic buying and growing realisation of the extent of staff and supply shortages."

She highlighted a 13% fall in the retail and wholesale trade category, plus a rise in automotive fuel sales.

Meanwhile, figures from the United States show prices there rose by 6.2% in October year-on-year, up from 5.4% in September.