UK GDP grows 0.3% in November but fails to alleviate 'precarious' economic situation

investmentweek.co.uk:

Overall GDP growth was a reverse of the 0.3% contraction seen in October, bringing UK growth flat over the two consecutive periods.

The UK services sector provided the majority of the growth for the month, with services output up 0.4%, following a 0.1% fall the previous month.

Production output also reversed its contraction in October and grew by 0.3% in November.

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Economists had forecast 0.2% growth for the period, putting the data above expectations.

The overall GDP growth was a reverse of the 0.3% contraction seen in October, making UK growth flat over the two consecutive periods.

Richard Carter, head of fixed interest research at Quilter Cheviot, said despite this uplift to growth, it still «leaves an awful lot of pressure on the December figures» as even a slight downward turn would result in the UK entering a technical recession, after Q3 GDP was revised down to a fall of 0.1% at the end of last year.

«This morning's figure shows just how precarious the situation is for the UK economy and piles yet more pressure onto the Bank of England to cut interest rates,» Carter said.

«The bank has managed not to tip the UK into a recession to date, but it is looking increasingly likely that its luck may be coming to an end.»

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Neil Birrell, chief investment officer at Premier Miton Investors, argued that whether the economy slipped into a mild recession or not was «unlikely to matter too much».

He said the key thing coming off the back of November's stats was that there was «not much momentum moving into 2024», given the flatlining growth.

Chancellor of the