UK economy grew 0.3% in November 2023

The Office for National Statistics (ONS) has revealed that the UK economy grew 0.3% in November 2023 according to its latest GDP estimates.

Despite the modest growth, UK output is estimated to to have fallen 0.2% in the three months to November 2023 when compared to the previous quarter, with November’s uptick in GDP not outweighing the 0.3% contraction recorded by the ONS in October.

Consumer-facing services sectors saw the highest growth in November, seeing 0.6% growth after four consecutive months of falls; however, these industries, which include hospitality, remain 5.8% below pre-pandemic levels from February 2020. Production output also grew 0.3% in November, the first growth seen in the sector since June, with manufacturing subsectors including pharmaceuticals, food and drink, and electronics seeing the fastest growth.

Construction output, meanwhile, fell 0.2% in volume terms, largely due to a decline in new work starts, in particular housebuilding and infrastructure projects. Repair and maintenance work saw a 2.1% increase.

The low growth in GDP continues the ongoing stagnation in the UK economy, with little to no growth currently forecast to persist over coming months amid raised interest rates and squeezed consumer spending.

Black Friday sales and the start of the Christmas shopping season are believed to be a major factor in the uptick in the UK economy in November. The UK also saw reduced strike action in November compared to previous months, as well as the end to the actors strike in the US helping to boost UK businesses in the TV and film production sector.