UK GDP beats expectations because it grows 0.1% in Nov

The UK financial system unexpectedly grew by 0.1% in November because the World Cup helped enhance restaurant and pub gross sales, in response to the newest knowledge from the Workplace for Nationwide Statistics (ONS).

It comes as analysts had predicted a fall of 0.3% for the month and has raised hopes that the UK might keep away from falling right into a recession.

The providers sector grew by 0.2% in November 2022, after development of 0.7% in October 2022 with the most important contributions coming from administrative and assist service actions and data and communication.

Output in consumer-facing providers grew by 0.4% in November 2022, following development of 1.5% in October 2022. The biggest contribution to development got here from meals and beverage service actions in a month the place the FIFA World Cup began.

In the meantime, the ONS revealed manufacturing output decreased by 0.2% in November 2022, after a fall of 0.1% in October 2022; manufacturing was the primary driver of detrimental manufacturing development in November 2022, partially offset by a constructive contribution from mining and quarrying.

The development sector was additionally flat in November 2022 after development of 0.4% in October 2022.

ONS director of Financial Statistics Darren Morgan stated: “The financial system grew a bit of in November with will increase in telecommunications and pc programming serving to to push the financial system ahead. Pubs and bars additionally did effectively as folks went out to look at World Cup video games.

“This was partially offset by additional falls in some manufacturing industries, together with the often-erratic pharmaceutical trade, in addition to falls in transport and postal, partially because of the affect of strikes.”

He added: “Over the past three months, nevertheless, the financial system nonetheless shrank – primarily because of the affect of the additional Financial institution Vacation for the Funeral of Her Majesty Queen Elizabeth in September.”