There was a glimmer of hope for struggling Brits today as the economy defied expectations by growing in November.
Figures showed UK plc expanded by 0.1 per cent with the services sector performing well and pubs and bars boosted by the World Cup.
That was far better than the 0.3 per cent reduction in GDP analysts had pencilled in.
However, the Office for National Statistics (ONS) pointed out that the past three months have still seen a fall in activity, largely due to the impact of the Bank Holiday for the Queen‘s funeral in September.
It raises the prospect that Britain might not technically be in recession – defined as two successive quarters of contraction – when the December data are released.
But the Bank of England has predicted that the country is on track for a grim 2023 with a long, if fairly shallow, recession.
Chancellor Jeremy Hunt insisted the government had to ‘stick to the plan’ and get inflation down to take the pressure off families.
Figures showed UK plc expanded by 0.1 per cent with the services sector performing well and pubs and bars boosted by the World Cup
ONS Director of Economic Statistics Darren Morgan said: ‘The economy grew a little in November with increases in telecommunications and computer programming helping to push the economy forward. Pubs and bars also did well as people went out to watch World Cup games.
‘This was partially offset by further falls in some manufacturing industries, including the often-erratic pharmaceutical industry, as well as falls in transport and postal, partially due to the impact of strikes.
‘Over the last three months, however, the economy still shrank – mainly due to the impact of the extra Bank Holiday for the Funeral of Her Majesty Queen Elizabeth in September.’
Mr Hunt said: ‘We have a clear plan to halve inflation this year – an insidious hidden tax which has led to hikes in interest rates and mortgage costs, holding back growth here and around the world.
‘To support families through this tough patch, we will provide an average of £3,500 support for every household over this year and next – but the most important help we can give is to stick to the plan to halve inflation this year so we get the economy growing again.’
Chancellor Jeremy Hunt insisted the government had to ‘stick to the plan’ and get inflation down to take the pressure off families
