UK economy strengthens past pre-pandemic levels

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The UK economy has grown beyond pre-pandemic levels for the first time, as figures from the Office for National Statistics suggest the economy in November 2021 was 0.7% bigger than February 2020 - the last comparable month before the country entered its first lockdown.

The figures come following a strong end to 2021, as the economy grew 0.9% sequentially, more than double initial estimates. However, figures don’t account for the sweeping wave of Omicron cases and Plan B measures seen in December - leading to concern growth may have slowed once again.

"The economy grew strongly in the month before Omicron struck, with architects, retailers, couriers and accountants having a bumper month," said ONS chief economist Grant Fitzner. "Construction also recovered from several weak months as many raw materials became easier to get hold of."

The initial boost was helped, for the most part, by a 3.5% growth in the construction sector.

Industrial output in the eurozone surged 2.3% sequentially in November - well above a consensus forecast for 0.5%. However, Eurostat revised its October industrial production number to a 1.3% contraction from an earlier estimate that showed a 1.1% uptick.

In the US, weekly jobless claims rose unexpectedly to 230,000, the highest number since mid-November. However, continuing claims fell more than expected to 1.56 million - the lowest number since June 1973. The University of Michigan’s index of consumer sentiment ticked down to a new pandemic-era low of 73.2, with many surveyed citing inflation worries.

China suspended dozens of international flights and issued more restrictions in response to the global surge in Omicron cases. Hong Kong, which had reported no local infections for months, reimposed some social and travel restrictions after a string of positive cases, dealing a setback to the city’s reopening hopes. Shanghai curbed tourist activity as it rushed to head off local infections as imported cases rose.