The British economy returned to growth in November but fell disappointingly short of City forecasts in another blow to Rachel Reeves. GDP was up by just 0.1%, the first month of growth since August, according to latest figures from the Office for National Statistics (ONS). But City economists had pencilled in growth of 0.2% for the month that followed the Chancellor’s first Budget.
It follows two months of falling output in September and October that raised fears of a “technical recession” over the autumn and winter. GDP flatlined in the third quarter of the year after Labour’s election victory. The ONS said that GDP had shown no growth in the three months to November.
The overall economy was saved from another fall by a 0.1% growth in output from the dominant services sector. But the production sector, which includes manufacturing, contracted by 0.4%, while construction output also fell by 0.4%. Chancellor Rachel Reeves said: “I am determined to go further and faster to kickstart economic growth, which is the number one priority in our Plan for Change.
“That means generating investment, driving reform and a relentless commitment to root out waste in public spending, and today I will be pressing regulators on what more they can do to deliver growth. “After fourteen years of economic stagnation, this Government’s number one mission is to grow our economy. I will fight every day to deliver that growth and put more money into working people’s pockets.”.
