Britain’s economy barely grew in October as figures out today showed that Gross domestic product edged up by just 0.1%, slowing sharply from monthly growth of 0.6% in September.
October’s meagre growth was propped up by a continued rise in face-to-face appointments at doctors’ surgeries in England, which had fallen sharply during the pandemic, contributing to a 0.4% rise in output in Britain’s dominant services sector.
By contrast, industrial output fell 0.6%, hit by big falls in electricity and gas and in mining and quarrying.
The manufacturing sector flat-lined as the sector struggled with supply chain problems and staff shortages.
Construction fell by the most since April 2020, down by 1.8% from September, also hit by a shortage of supplies.
Alpesh Paleja, CBI Lead Economist, said:
“Growth disappointed in October, reinforcing concerns about the resilience of the UK’s economic recovery to the Omicron variant and the impact of further restrictions. We need to create consistency in our approach and build confidence by reducing the oscillation between normal life and restrictions as we learn to live with the virus and its variants.
“Meanwhile, supply pressures remain acute and further rises in inflation are looming. We expect growth to build further momentum ahead, but more action is needed to address longer-term challenges, including “scarring” from COVID and poor productivity.
“It’s clear that a booster for growth – particularly investment – is needed, to protect and build on our recovery. Government can back business by pursuing pro-investment and pro-innovation regulation to help build new markets and a competitive tax regime; incentivising business investment. Getting this mix right will pay dividends over the longer term.”
TUC General Secretary Frances O’Grady said:
“The UK’s recovery was already in the slow lane. This week’s new restrictions will slow it further without financial support for the sectors that will be hit. Ministers should reboot furlough right now to protect jobs and livelihoods.”
