UK economy grows more than expected in November narrowly avoiding recession

The uplift was driven by the services sector, which rose by 0.4% during the month, and was the biggest contributor to economic growth

The UK economy grew by more than expected in November, according to new figures, as the prospect of the country entering a recession at the end of the year hangs in the balance.

Gross domestic product (GDP) rose by 0.3% in November, after declining by 0.3% in October, according to the Office for National Statistics (ONS).

Economists had been expecting GDP to rise by 0.2%.

The uplift was driven by the services sector, which rose by 0.4% during the month, and was the biggest contributor to economic growth.

The ONS’s chief executive Grant Fitzner said: “The economy contracted a little over the three months to November, with widespread falls across manufacturing industries, which were partially offset by increases in public services, which saw less impact from strike action.

“GDP bounced back in the month of November, however, led by services with retail, car leasing and computer games companies all having a buoyant month.

“The longer-term picture remains one of an economy that has shown little growth over the last year.”

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Chancellor of the Exchequer Jeremy Hunt said: “While growth in November is welcome news, it will be slower as we bring inflation back to its 2% target.

“But we have seen that advanced economies with lower taxes have grown more rapidly, so our tax cuts for businesses and workers put the UK in a strong position for growth into the future.”

Rachel Reeves MP, Labour’s Shadow Chancellor, said: “The Conservatives have presided over 14 years of economic failure that has left working people worse off.

“A decade of low economic growth has left Britain with the highest tax burden in 70 years, with families set to be £1,200 a year worse off under the Tories’ tax plans.

“It’s time for change. Rishi Sunak should call an election and give the people the chance to vote for a Labour government that will get Britain’s future back.”

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