Home Business News UK economy bounces back with 0.3% growth

UK economy bounces back with 0.3% growth

by Amy Johnson LLB Finance Reporter
12th Jan 24 11:20 am

The UK’s economy bounced back in November after shrinking during the previous month, according to official figures published this morning.

The data showed that the economy grew by 0.3% in the month, which was stronger than expected and came after a contraction in October.

The Office for National Statistics said the rebound was led by the services sector, with areas such as retail boosted by Black Friday sales. However, the long-term picture was “one of an economy that has shown little growth over the last year,” it said.

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Figures released last year showed the UK was at risk of falling into a recession after the economy shrank between July and September.

While the monthly growth figure was stronger than expected, the ONS figures also showed that in the three months to November, the economy shrank by 0.2%.

Economists predict it will be a close call as to whether the UK can avoid a recession.

Ruth Gregory, deputy chief UK economist at Capital Economics, said November’s rebound “probably means the economy escaped a recession in 2023”, but expects zero growth for the final three months of the year.

Derek Mackenzie, CEO at Investigo, part of The IN Group, said, “With businesses battling tough trading conditions and high interest rates, getting the right talent in place to drive growth this year will be a top priority for boardrooms across the country.

“Far too many organisations are still operating without robust digital talent pipelines in place, meaning they could miss out on the seismic workplace changes which will inevitably occur due to increased adoption of AI and other key technologies.”

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