UK economy unexpectedly grows 0.1% in November: ONS By Reuters

By David Milliken

LONDON (Reuters) -Britain’s economy unexpectedly eked out some modest growth in November, reducing the chance that figures will show it slipped into a technical recession in the final quarter of last year, despite a gloomy broader picture.

Gross domestic product rose 0.1% in November from October, figures from the Office for National Statistics showed on Friday, stronger than the average forecast for a fall of 0.2% in a Reuters poll of economists.

During the three months to the end of November the economy shrank by 0.3% in line with economists’ forecasts, but this was driven by a 0.6% fall in output in September when many businesses closed to mark Queen Elizabeth’s funeral.

“The economy grew a little in November with increases in telecommunications and computer programming helping to push the economy forward. Pubs and bars also did well as people went out to watch World Cup games,” ONS statistician Darren Morgan said.

The ONS said December’s GDP would need to drop by about 0.5% for fourth-quarter growth to be negative when rounded to one decimal place, assuming no other revisions.

Two consecutive negative quarters are the commonly used definition of a recession in Europe.

More broadly, Britons are already beset by double-digit inflation which is squeezing living standards, and the government’s budget watchdog forecasts output will fall this year.

Finance minister Jeremy Hunt said after the GDP data that “the most important help we can give is to stick to the plan to halve inflation this year so we get the economy growing again”.