GDP grows by 0.3% in November

UK gross domestic product (GDP) is estimated to have grown by 0.3% month-on-month in November, after falling by 0.1% in October, the Office for National Statistics (ONS) has revealed.

In the three months to November, GDP grew by 0.1% compared to the three months to August. This follows no growth in the three months to October.

The ONS revealed that month-on-month, production output is estimated to have increased by 1.1%, following growth on 1.3% in October. The increase was due to a 2.1% growth in the manufacturing sector.

However, in the three months to November, production output fell by 0.1% after falling by the same proportion in the previous month.

Services output increased by 0.3% and construction output dropped by 1.3% in November.

Personal finance analyst at Bestinvest, Alice Haine, said that the uplift in activity comes despite the uncertainty caused by the late Autumn Budget.

She added: "Growth in November was largely driven by an uplift in the services and production sectors, which was partly attributed to the phased restart for manufacturing at Jaguar Land Rover following the cyber-attack in the Autumn.

"The positive GDP data will deliver some relief for Chancellor Rachel Reeves at the start of the year, particularly as early indicators for December point to softer jobs data, subdued card spending and fragile business sentiment – though some of this can be attributed to the typical seasonal slowdown over the festive period.

"Employers and consumers are still bracing for more pain in the face of an ever-rising tax burden, however. Businesses, already contending with higher employment costs introduced at the 2024 Budget, notably the increase in the rate of employer National Insurance, now have fresh hikes in business rates and the minimum wage to contend with from 1 April this year. Add to that a cooling jobs market and geopolitical uncertainty, and many employers and households are approaching the new year with caution."



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