The UK’s GDP grew just 0.1% in October, highlighting the minute growth.
As firms struggle amid shortages and supply chain issues, the economy came to a standstill and was well below analyst expectations of 0.4%.
The economy was pushed by demand for second-hand cars and a growth in business at employment agencies.
CBI Lead Economist, Alpesh Paleja, commented on the figures: “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.”
Restaurants and hotels fared badly in October, where output fell by 5.5%.
“Early evidence suggests growth in November might have been a bit better. Nonetheless, at such low rates of growth, the government’s “Plan B” COVID-19 restrictions could be the difference between the economy growing or contracting in December,” said Paul Dales of Capital Economics.