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Britain’s economy grew 0.1 percent in November, below analysts’ expectations but still marking the first expansion since August.
The monthly figure is below the 0.2 percent growth forecast of economists polled by Reuters and follows a contraction of 0.1 percent in October and September, according to data released on Thursday by the Office for National Statistics. .
Thursday’s data will not allay concerns about the performance of the British economy, after fears of stagflation, in which sluggish growth is accompanied by persistent price pressures, contributed to a sharp rise in labor costs. loan at the start of the year.
This follows official data released on Wednesday showing an unexpected fall in inflation to 2.5 percent in December from 2.6 percent the previous month.
The economy failed to grow in the three months to September, marking a sharp slowdown from the previous quarter’s 0.4 percent expansion. Growth was 0.7 percent between January and March last year.
In December, the Bank of England said it expected no growth in the final three months of the year, down from a 0.3 percent expansion it had forecast in november.
The BoE left interest rates unchanged at 4.75% last month after cutting borrowing costs twice in 2024. Markets widely expect the bank to cut its key rate by one quarter point in February.
Experts interviewed by the FT expect the UK economy to outperform those of France and Germany, but warned that Reeves’ plans to increase employers’ social security contributions could harm the jobs market. The Chancellor announced the increase in her October Budget, but it will not take effect until April.
This is a developing story
