UK economy rebounds in November with 0.3% growth after shrinking in October

12 January 2024, 07:22 | Updated: 12 January 2024, 07:58

The UK economy grew in November
The UK economy grew in November. Picture: Alamy
Kieran Kelly

By Kieran Kelly

The UK economy rebounded in November after shrinking the month before, growing by 0.3%, new data shows.

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The growth was stronger than expected after contracting in October last year.

Despite the growth, there are warnings the UK could still enter a recession, which can be defined as two consecutive quarters of negative growth.

The economy declined between July and September, according to revised estimates from the ONS.

Therefore, monthly GDP would need to be fractionally below zero in December, 0.02% or more, in order for the economy to have shrunk between October and December as well.

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."

Read More: Taxes will not fall to pre-pandemic levels ‘in one go’, says Hunt

Read More: Global economy will slow for a third straight year in 2024, World Bank predicts

ONS chief economist Grant Fitzner said of the latest data: "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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