UK economy beats expectations with November growth

The UK economy grew unexpectedly in November, helped by a boost from the World Cup, government figures show.

The economy grew by 0.1%, supported by demand for jobs in the technology sector and even as households were squeezed by rising prices.

The Office for National Statistics (ONS) says pubs and restaurants are also contributing to growth as people go to watch football.

But it remains to be seen whether rising prices will lead to a UK recession.

Although November’s reading of gross domestic product – a measure of everything that businesses, government and UK people do – was much better than we expected, the overall picture still shows that the economy is singing as food and energy costs rise and so do people. reduce.

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The increase in November represents a slowdown from a rise of 0.5% in October, which was mainly due to the return of businesses that closed to record the funeral of Queen Elizabeth II in September.

Economists say the latest figures show the UK will be in trouble by the end of last year.

A recession is defined as two consecutive three-month periods, or quarters, of recession.

When a country is in trouble, it is a sign that its economy is not doing well. During a downturn, companies often make less money and the unemployment rate rises. Graduates and school leavers also struggle to find their first job.

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Between July and September, UK economic output fell by 0.3%.

Economic growth has slowed sharply since October, partly due to the intervention.

Rail workers and Royal Mail workers have hit out at pay and working conditions in November. Darren Morgan, head of economic statistics at the ONS, told the BBC’s Today programme: “We’ve really seen the impact of industry today.

“We saw a significant drop in rail traffic, postal services and warehouses and this sector had a significant impact on the economy in November.”

There was a continuation of industrial action in December, which expanded to include NHS staff and Border Force staff at six UK airports. It could have an impact on next month’s figures, which will reveal whether the technical definition of recession has been met.

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Mr Morgan said the economy would need to contract by 0.6% in December for the UK to fall below the threshold.

While there may have been a temporary improvement in November, the Federation of Small Businesses (FSB) warned that economic concerns were not yet settled.

The FSB’s national chairman, Martin McTague, said: “With money left for small businesses and households, policy makers cannot rest. Inflation must be reduced, there is still great uncertainty over energy prices and consumer confidence remains intact. very low.”


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