The UK’s economy grew slightly in November, marking the first increase in three months, but the growth fell short of expectations.
According to the Office for National Statistics (ONS), gross domestic product (GDP) rose by 0.1% in November, following contractions in September and October. Despite this modest uptick, the economy remained “broadly flat,” with no growth recorded over the three months leading up to November. Economists had anticipated a 0.2% increase for the month.
The modest growth adds to ongoing challenges for Chancellor Rachel Reeves, whose government has faced recent turbulence, including surging borrowing costs and a weakening pound. While markets stabilized after an unexpected drop in inflation earlier in the week, November’s lackluster economic performance is likely to prompt further scrutiny of the government’s fiscal policies.
Chancellor pledges to fight for growth
In response to the GDP figures, Chancellor Reeves reiterated her commitment to boosting economic growth, stating:
“After 14 years of economic stagnation, this government’s number one mission is to grow our economy. I will fight every day to deliver that growth and put more money into working people’s pockets.”
Ms. Reeves is set to meet with regulators and industry leaders to address barriers to investment. Joining forces with Business Secretary Jonathan Reynolds, she plans to discuss potential reforms with key regulatory bodies, including the Competition and Markets Authority, Ofcom, and Ofgem, in an effort to streamline regulations and encourage economic recovery.
Mixed economic performance
November’s figures revealed growth in some sectors, notably hospitality and IT services, which saw increased activity. However, the manufacturing sector contracted by 0.3%, contributing to the overall sluggish performance.
Shadow Chancellor Mel Stride expressed disappointment with the latest data, calling it “a crisis made in Downing Street.” He urged the government to take decisive action to address the underlying economic challenges. Similarly, Liberal Democrat Treasury spokesperson Daisy Cooper highlighted the consequences of stagnant growth, emphasizing its impact on household finances and public services. Photo by The wub, Wikimedia commons.