Britain’s economic growth slowed in the third quarter as GDP edged closer to pre-pandemic levels, according to official figures.

Gross domestic product (GDP) expanded by a slightly weaker than expected 1.3%, down from 5.5% in the second quarter, according to the Office for National Statistics (ONS).

A monthly breakdown of the data suggested that in September, GDP was just 0.6% shy of its level in February 2020, before the pandemic struck.

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But for the quarter as a whole, growth in the dominant services sector – representing four-fifths of output – was held back by weak consumer spending, with successive declines in retail sales.

Easing restrictions and the reopening of the economy helped sub-sectors such as hotels and restaurants – up 30% – and arts and entertainment – which grew by 19.6%.

But the manufacturing sector – where car factories have been hit by a global shortage of semiconductor chips – and construction – which saw higher input prices and delays to the availability of some products – both contracted over the period.

Chancellor Rishi Sunak said: “The economy continues to recover from COVID and thanks to schemes like furlough, the unemployment rate has fallen for eight months in a row and we’re forecast to have the fastest growth in the G7 this year.

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“As the world reopens we know that there are still challenges to overcome.”

But Bridget Phillipson, Labour’s shadow chief secretary to the Treasury, said: “This morning’s GDP figures confirm that the economic recovery is slowing and risks grinding to a halt.

“We need urgent action to keep the economy moving and support households as we head into the winter, as prices rise and as the cost of living crisis continues to escalate.”

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