Gross domestic product rose 0.5% in October from September, which included an extra holiday for the queen's funeral and a period of national mourning. The US economy shrank 0.3% in the three months through October compared with the previous quarter.

The figures show that the UK economy is a hard struggle. Especially in terms of the cost of living crisis, and it is said to be in a lengthy recession. The darkening outlook also forced the Bank of England to make policies that benefit investors.

"Business confidence has been falling dramatically as firms face a wall of higher prices and energy bills, increased taxation, and rising borrowing costs," said David Bharier, head of research at the British Chambers of Commerce.

He also said that the UK was losing a long-term loss of competitiveness. This is evidenced by the exports that fell marginally. Imports fell as falling gas prices cut the value of shipments, but he said that this difficulty should be allowed to last only a short time.

UK's Economy Rebounded by 0.5% in October, but Recession Fears Are Still Looming

The economy returned to growth in October, which is good news for the UK public. However, the economy, which shrank by 0.3% in the past quarter, shows a contraction in the economic sector. But, the impact of the additional bank holiday is the most impactful.

"October's rebound is a false dawn for the economy as it mostly reflects the favorable comparison with September when activity was suppressed by the bank holiday for the Queen's funeral," said Suren Thiru, economics director at the ICAEW.

He also said this is a positive and good start in the 4th quarter. It can be something that prevents recession with the growing squeeze on income. However, he also highlighted that this could be a tentative rebound from falling GDP in September.

Meanwhile, the British economy is estimated to have improved thanks to increased car sales. The services and manufacturing sectors declined, but the household and business sectors came to pay off. Statistics show that the health sector also saw a strong month.

In addition, the government plans to pull back the energy support piece next year. This, coupled with a higher interest rate, will squeeze disposable income and spur the household. However, recession fears and worries resurfaced in the news.

The Bank of England Predicted to Hike the Interest Rate Further as the Economy Will Get Worse Before it Gets Better

As conveyed by Chancellor Jeremy Hunt, who stated that the figure revealed it shrank further between August and October. This means that the economy contracted by 0.3% for three months as soaring pieces hit businesses, and it is heading into a recession.

He said: These figures confirm that this is a very challenging economic situation globally. And it will get worse before it gets better," It means that the government receives fewer taxes to spend on public services, and the UK is facing the most prolonged downturn.

Last month, the BoE raised interest rates from 2.25% to 3%, which was the most significant jump since 1989. The Bank is expected to announce a further increase on Thursday by half a percentage to 3.5%. So, consumers should be more cautious about their spending.

In addition, the Bank of England said on Saturday that it would work with Britain's finance ministry to ensure a safe and competitive financial system. This primary goal is for the economy to maintain a safe and UK's position to become a financial center.

The UK economy clearly can be considered as having no role in the global sector. The Bank of England is also worried that the economic recession in the UK could affect other countries and globally. That's why the rebound that occurred in October is considered a positive.