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UK economy returns to growth in November, with 0.3% rise in GDP
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UK economy returns to growth in November, with 0.3% rise in GDP
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Today's agenda
The UK economy returned to growth in November, with GDP expanding by 0.3%.

That is slightly stronger than the 0.2% growth City economists had expected.

It follows the 0.3% contraction in October.

The Office for National Statistics said that the UK’s services sector provided the bulk of the growth in November.

Services output grew by 0.4% in November 2023 and was the main contributor to the monthly growth in GDP; this follows a fall of 0.1% in October 2023 (revised up from a 0.2% fall).

Production output grew by 0.3% in November 2023, following a fall of 1.3% in October (revised down from a 0.8% fall).

The construction sector fell by 0.2% in November 2023 after a fall of 0.4% in October 2023 (revised up from a 0.5% fall).

Despite the pick-up in growth in November, the UK economy shrank in the three months from September to November.

GDP in the three months to November fell by 0.2% compared with the three months to August 2023.

The ONSchief economist Grant Fitzner, said: “The economy contracted a little over the three months to November, with widespread falls across manufacturing industries, which were partially offset by increases in public services, which saw less impact from strike action.

"GDP bounced back in the month of November, however, led by services with retail, car leasing and computer games companies all having a buoyant month.

"The longer-term picture remains one of an economy that has shown little growth over the last year.”

The chancellor, Jeremy Hunt, has welcomed the news that the UK economy returned to growth in November.

He said efforts to slow inflation (such as high interest rates) weighed on the economy: “While growth in November is welcome news, it will be slower as we bring inflation back to its 2% target.

"But we have seen that advanced economies with lower taxes have grown more rapidly, so our tax cuts for businesses and workers put the UK in a strong position for growth into the future.”

The agenda
• Noon GMT: India’s inflation rate in December
• 1.30pm GMT: US PPI index of producer price inflation in December
• 4pm GMT: Russia’s inflation rate in December

We’ll be tracking all the main events throughout the day ...
Nils Pratley on finance
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John Crace

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Well, 2023 didn’t exactly go to plan, did it? Here in the UK, prime minister Rishi Sunak had promised us a government of stability and competence after the rollercoaster ride of Boris Johnson and Liz Truss. Remember Liz? These days she seems like a long forgotten comedy act. Instead, Sunak took us even further through the looking-glass into the Conservative psychodrama.

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