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Pressure eases on Rachel Reeves as UK economy grows by 0.1% in November

2025-01-16 07:03

The UK economy grew by 0.1% in November, reversing a 0.1% drop in the previous month and easing pressure on embattled chancellor Rachel Reeves.

The expansion in activity will be welcomed by the Treasury, as it shows the economy expanded following the budget at the end of October.

But growth was slower than expected, as City economists had forecast that GDP would rise by 0.2% in November.

Some economists have warned that the economy is on course to stall overall in the final three months of 2024, after zero growth in the three months to the end of September.

The Bank of England has pencilled in no growth for the fourth quarter, leading to worries that the UK could undergo a long period of stagnation combined with relatively high inflation, although prices growth unexpectedly fell from 2.6% to 2.5% in December.

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