The UK economy grew by 0.3% in November, more than expected

The British economy grew more than expected in November Driven by the growth of the services sectorWhich may reduce the chances of an imminent interest rate cut from the Bank of England.

gross domestic product By 0.3% compared to the previous monthAccording to figures published on Friday by the Office for National Statistics (ONS). Economists expected GDP to grow by 0.2%.

On a quarterly basis, GDP fell by 0.2% in the three months to November compared to the three months to August 2023.

the Services production grew by 0.4% in November 2023 And it was him Major shareholder For monthly GDP growth; This follows a 0.1% decline in October 2023 (revised upwards from a 0.2% decline in the previous ONS publication).

Industrial production grew by 0.3% in November 2023after a 1.3% decline in October (revised down from a 0.8% decline).

he The construction sector fell 0.2% in November 2023 after a 0.4% decline in October 2023 (revised up from a 0.5% decline).

Although economic growth may ease some concerns about recession, after a 0.3% contraction in October, The country remains in a fragile economic environment. The lack of expansion in December means… Zero growth in the last quarter of 2023Office for National Statistics reports.

“GDP continued to fluctuate around a generally flat trend in the second half of last year, however The economy should overcome its slumber in 2024“The increase in GDP in November,” economists at Pantheon wrote in a commentary published on Friday Reversing the entire October decline. Production in consumer-oriented sectors rebounded after spending took a hard hit in October. It was negatively affected by Storm Babbitt and the subsequent school holiday schedule in some areas. In addition, a decline in industrial actions supported increased activity in the healthcare, transportation, and television and film production sectors.

“Looking ahead, we still believe the economy will regain momentum this year,” Pantheon insists, saying that GDP growth is likely to strengthen even as the lagged effects of higher interest rates on gross fixed asset formation and the weakening of global exports are felt. “We expect year-on-year GDP growth to accelerate to around 0.8% from 0.3% in 2023.”.