London Daily

Focus on the big picture.
Thursday, Apr 23, 2026

COVID-19: Rishi Sunak warns of 'bumps on road' as figures show growth stalled even before arrival of Omicron variant

COVID-19: Rishi Sunak warns of 'bumps on road' as figures show growth stalled even before arrival of Omicron variant

The ONS data is likely to further dampen diminishing expectations that the Bank of England might announce a pre-Christmas interest rate hike next week.

Chancellor Rishi Sunak has warned of "bumps on our road to recovery" as new figures showed growth stalled even before the arrival of the Omicron variant.

GDP grew by just 0.1% in October, well short of the 0.4% expected by economists and a big slowdown on September's 0.6% expansion, the Office for National Statistics (ONS) said.

The data showed evidence of a summer dining-out spree petering out, as well as the beleaguered construction sector struggling with supply chain delays.

A summer dining out surge petered out


Experts fear that new Plan B COVID restrictions could pour further cold water on the recovery - with the ONS figures suggesting GDP in October was still 0.5% short of pre-pandemic levels in February 2020.

Mr Sunak said: "We've always acknowledged there could be bumps on our road to recovery, but the early actions we have taken, our ongoing £400bn economic support package and our vaccine programme mean we are well-placed to keep our economy on track.

"We have still been recovering quicker than expected, with more employees on payrolls than ever before and redundancies remaining low."

The figures look likely to further dampen expectations that the Bank of England could hike interest rates next week to try to tackle cost of living increases.

Maike Currie, investment director at Fidelity International, said rising inflation and the spread of Omicron might send the economy into contraction.

"The Bank of England will be acutely aware that it's harder to dig an economy out of recession than to cool rising
inflation, which makes an interest rate rise next week increasingly unlikely," she said.

Manufacturing flatline as it struggled with supply chain problems


The ONS data for October pointed to a sharp fall in construction output as builders face higher costs and delays in the supply of materials such as steel, glass, concrete, and timber.

There was also a decline in restaurants after a strong summer, with a 7.5% fall in food and beverage services activities.

Industrial output was hit by big falls in electricity and gas as well as mining and quarrying, while the manufacturing sector flat-lined as it struggled with supply chain problems and staff shortages.

Growth was largely driven by a rise in face-to-face GP appointments as well as second-hand car sales and employment agencies - at a time when new cars as well as workers in some sectors have become hard to find.

The services sector, which represents four-fifths of economic output and ranges from pubs and hotels to law firms and accountants, recovered to pre-pandemic levels for the first time, though the consumer-facing part of the sector remains 5.2% short.

Alpesh Paleja, lead economist at the CBI, 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."

Newsletter

Related Articles

0:00
0:00
Close
Crypto Scammers Capitalize on Maritime Chaos Near the Strait of Hormuz: A Rising Threat to Shipping Companies
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
UK Calls for Full and Toll-Free Access Through Strait of Hormuz Amid Rising Tensions
Starmer Signals Strategic Shift for Britain Amid Escalating Iran-Linked Tensions
UK Issues Firm Warning to Russia Over Covert Underwater Military Activity
OpenAI Halts Stargate UK Project, Casting Uncertainty Over Britain’s AI Expansion Plans
Starmer Voices Frustration Over Global Pressures Driving UK Energy Costs Higher
UK Deploys Military Assets to Protect Undersea Cables From Suspected Russian Threat
Canada Aligns With US, UK and Australia as Europe Prepares Major Digital Border Overhaul
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
×