Extra financial support must remain an option as economic growth slows - Chamber

The UK economy grew by just 0.1 per cent in October, despite a strong performance from the health sector, according to figures released today.

It means the economy is now 0.5 per cent below its pre-pandemic level of February 2020.

The Office for National Statistic (ONS) say services output grew by 0.4 per cent, with the most significant contribution coming from human health activities - mainly because of a continued rise in face-to-face appointments at GP surgeries.

However, a fall in people dining out and reductions in oil extraction and gas use meant overall growth came in lower than expected.

Raj Kandola (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Although we are edging closer to pre-pandemic levels of activity, the pace of economic growth slowed considerably in October.

“The fall in construction and manufacturing activity is likely to be linked to the headwinds created by labour and supply shortages coupled with the sharp increase in levels of inflation - a growing concern for many businesses locally according to early analysis from our latest Quarterly Business Report.

“It was pleasing to see an uptick in activity in the services sector, however, given the new restrictions introduced under Plan B, this is likely to have a notable impact on consumer demand.

“It 's essential the Government does everything in its power to alleviate the huge cost pressures firms are facing right now and keep the option of additional financial support on the table if we see a drastic drop in consumer activity over the coming weeks. ”

Read the Chamber 's response to the Government 's Plan B restrictions.