UK economic growth lower than expected
By David Wood | 16th January 2025
The UK economy grew for the first time in three months, driven in part by a boost in trade for pubs, restaurants and the construction industry.
Official figures showed an expansion of 0.1% in November after the economy shrank in each of the two previous months.

The return to growth will be a welcome sign for the government after recent turbulence in financial markets sent its borrowing costs to the highest level for several years and the value of the pound fell.
But the figure was lower than economists had expected, with declines in manufacturing and business rentals and leasing, the BBC reported.
Chancellor Rachel Reeves reiterated her pledge that improving economic growth was the "number one priority" for the government.
"That means generating investment, driving reform and a relentless commitment to root out waste in public spending," she said.

Responding to the Office for National Statistics figures showing that GDP rose by 0.1% in November, Martin McTague, national chair of the Federation of Small Businesses (FSB), said: "November's nearly-flat growth in GDP offers little comfort to small firms, and it reflects the difficult trading conditions they have been consistently reporting.
"However, yesterday's news that inflation rose by less than expected will give small firms a measure of hope that interest rates could fall in the near future, something that is badly needed.
"The Government must now make good on its statements that growth is its number one priority. Its recent call for regulators to put forward suggestions for growth-friendly changes they could make is one small businesses will welcome. Support for small firms must also be at the core of the three strategies which will be unveiled this spring: the Industrial Strategy, the Small Business Strategy and the Trade Strategy.
"Looking ahead, the proposed changes in the Employment Rights Bill are much less promising. With nine in ten small firms expressing concern about the Bill, and with two-thirds saying they are preparing to hire fewer staff, the Bill risks dampening growth, and harming the economy by reducing employment levels and deterring expansion.
"The forthcoming Spending Review must be used by the Government as an opportunity to look at how to support small businesses. Small business owners, limited company directors, and the self-employed should be shielded from future tax rises, as it is small and medium-sized businesses who are the ones with the greatest potential to grow, if given the right conditions."

Stuart Morrison, research manager at the British Chambers of Commerce, said: "With no growth in the three months to November 2024, and a very limited uptick for the month itself, it's clear that the UK economy continues to be stuck in a worrying rut.
"Our latest forecast expects GDP to pick up slightly in 2025 and 2026, but this is driven largely by increased government spending. Right now, firms are struggling to deal with a raft of extra costs following the Budget. Investment levels are likely to remain low for the foreseeable future, as businesses try to balance their books.
"We urgently need to see government action to ease cost-pressures and spark investment. Ministers should focus on business rates reform, infrastructure projects and promoting trade to unlock economic growth."
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