Before the emergence of the new Omicron variant of the coronavirus in October, Britain's economy barely grew, further dampening expectations that the Bank of England will hike interest rates next week for the first time since the pandemic occurred.

In October, the gross domestic product increased by a weaker-than-expected 0.1%.

According to the Office for National Statistics, the economy remained 0.5% smaller than in February 2020, just before the country entered its first COVID-19 lockdown.

Finance Minister Rishi Sunak stated, "we've always understood there could be obstacles on our road to recovery. However, the early steps we've taken, as well as our ongoing 400 billion pound economic stimulus package and vaccination programme, put us in a good position to keep our economy on track."

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The British economy rebounded substantially earlier this year after an almost 10% slump in 2020, when the pandemic struck.

However, the recovery has slowed in recent months as manufacturers have experienced supply chain issues, and it is expected to lose even more steam as a result of new COVID-19 rules aimed at slowing the spread of the Omicron variant.

The meagre recovery in October was bolstered by a steady rise in face-to-face appointments at doctors' clinics in England, which had dropped drastically during the pandemic, leading to a 0.4% increase in output in the UK's dominant services sector.

Industrial output, on the other hand, declined 0.6%, due to significant drops in electricity and gas, as well as mining and quarrying. As a result of supply chain issues and staff shortages, the manufacturing sector stagnated. Construction fell to its lowest level since April 2020, dropping 1.8% from September, owing to a supply shortage.