UK economy expanded in Nov as services activity strengthens: ONS

The UK’s economy is estimated to have grown by 0.1 per cent in November 2022 as services activity strengthened during the FIFA World Cup 2022 in Qatar, statistics have revealed.

Between October and November 2022, the country’s services sector grew by 0.2 per cent, while production output decreased by 0.2 per cent and the construction sector was flat, Xinhua news agency quoted the Office for National Statistics (ONS) as saying on Friday.

The economy grew a little in November with increases in telecommunications and computer programming pushing the economy forward. Pubs and bars also did well as people went out to watch the World Cup games, ONS Director of Economic Statistics Darren Morgan noted.

This was partially offset by further falls in certain manufacturing industries, including the pharmaceutical industry, as well as falls in transport and postal services partially due to the impact of strikes, Morgan added.

The November expansion followed the growth of 0.5 per cent in October, the ONS said, while the gross domestic product (GDP) still fell by 0.3 per cent in the three months to November, mainly due to the extra bank holiday for the funeral of Queen Elizabeth II in September.

Recession risks have eased with better-than-expected monthly performance.

It suggests the economy did not contract in the fourth quarter and is not in recession, Ruth Gregory, senior UK economist at Capital Economics consultancy, said.

Nevertheless, “it is too soon to conclude the economy will be able to get through this period of high interest rates and high inflation largely unscathed. We still think a recession is on its way”, Gregory added.

20230114-091203

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here