Before Omicron, UK economic growth was slower than expected

LONDON, England: The UK economy slowed in July and September, according to newly released figures.

During the third quarter before Omicron struck, the nation's economy grew at 1.1 percent, rather than the projected 1.3 percent, reports the Office for National Statistics (ONS).

The ONS said the reason for the weaker showing was due to less than expected consumer spending and the impact of energy companies going out of business.

Today's UK economy is 1.5 percent smaller than before the coronavirus pandemic struck, the ONS reported.

Data collected in the fourth quarter, after the Omicron virus arrived, is expected to see even worse figures.

"Our revised figures show UK GDP (gross domestic product) recovered a little slower in the third quarter, with much weaker performances from health and hairdressers across the quarter, and the energy sector contracting more in September than we previously estimated," said Darren Morgan, director of economic statistics at the ONS, as quoted by the BBC.

"With the economy reopening in the third quarter, households saved less in the latest period. However, household savings were still up on pre-pandemic levels," added Morgan.

Officials noted that over 20 companies went bankrupt in the past months due to increased wholesale gas prices, resulting in companies unable to deliver to customers at promised prices.

Indeed, some four million households have seen their gas supplier go out of business since the start of the pandemic. Additionally, credit card debt increased for some 15 million people in April.

At the same time, Morgan noted that stronger economic figures for 2020 were evidence that the economy was closer to pre-pandemic levels than first estimated.

Britain's economy fell 9.4 percent last year, rather than the predicted 9.7 percent.

Additionally, investments by businesses dropped by 2.5 percent in the three months to September. Overall, investments fell nearly 12 percent below its pre-pandemic level.

Bethany Beckett, economist at Capital Economics, said that the "possibility of tighter restrictions in January is further darkening the outlook for GDP," as reported in the BBC.