The UK economy grew in November, with GDP* (gross domestic product) seeing a 0.3% rise, stronger than the 0.2% month-on-month growth expected and following a 0.3% fall in October.
However, GDP was down 0.2% over the three months to the end of November, keeping the economy in a precarious position.
Monthly growth reflected strong performance in services, particularly in information and communication which grew 1.5% thanks the computer games industry and telecommunications.
Services output grew 0.4% month-on-month, following a 0.1% dip, while in another positive swing production output grew 0.3% month-on-month, following a fall of 1.3% in October. Meanwhile the construction sector fell 0.2% month-on-month, after a fall of 0.4% in October 2023.
James Smith, research director at the Resolution Foundation, said: “The economy grew more strongly than expected between October and November, driven by a recovery in our services sector including strong black Friday retail sales and a high performing ICT sector, making it less likely Britain will fall into recession.
“The final verdict on 2023 will come next month, but it is essential that Britain builds some economic momentum in 2024.”
Ben Jones, CBI lead economist, said: “It’s encouraging to see that economic activity rebounded in November after the previous monthly fall. But while this means the UK should avoid a technical recession last year, it masks an overall picture of a flatlining economy.
“The CBI’s latest surveys suggest the economy will struggle to gain any traction in the near term, as consumers rein in spending and firms face a trio of headwinds in the form of subdued demand, cost pressures and ongoing difficulties finding the staff they need.
“With an election fast approaching, all parties need to look at measures which can get the economy firing on all cylinders. Full capital expensing was an exciting first step in this direction, but the Spring Budget is a chance to press ahead with a wider programme of measures around innovation, skills and decarbonisation that provide the foundations for sustainable economic growth and kick-start productivity.”
*GDP measures the value of goods and services produced in the UK. It estimates the size of and growth in the economy.
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