The UK economy grew for the first time in three months – but only just.
The tiny growth was driven in part by an increase in trade for pubs, restaurants, and the construction industry.
Official figures showed an expansion of 0.1% after the economy contracted in each of the two months.
The return to growth will be a welcome sign for the government after recent turbulence in financial markets sent borrowing costs to their highest level in several years and caused the value of the pound to fall.
However, the figure was lower than economists had expected, with declines in manufacturing and business rentals and leasing.
Chancellor Rachel Reeves reiterated her pledge to go ‘further and faster’ to improve economic growth in order to boost living standards, declaring it was the ” number one priority” for the government.
‘That means generating investment, driving reform, and a relentless commitment to rooting out waste in public spending,’ she reportedly said. She also repeated her accusation of blame at the Tories for the low growth. The chancellor surely cannot expect to continue escaping accountability with the blame game tactic for much longer.
However, with tax rises set to come into effect in April 2025, businesses have repeatedly warned that the extra costs faced through in National Insurance, as well as the minimum wage, could impact the economy to grow, with employers expecting to have less cash to give pay rises and create new jobs.
In the three months to November, the economy is estimated to have shown no growth, as calculated by the Office for National Statistics (ONS).
UK November 2024 0.1% growth
