UK Economy Grows 0.1% in November

The UK economy experienced a modest growth of 0.1% in November, the first increase after three months of contraction. This growth fell short of the expected 0.2% rise, primarily driven by the services sector, which also grew by 0.1%. Despite this uptick, concerns about stagflation persist, particularly following significant tax increases announced by Chancellor Rachel Reeves. The manufacturing sector faced a contraction of 0.3%, while construction saw a slight increase of 0.4%. Economists warn that the lack of substantial growth suggests a stagnant economy, with overall output remaining 0.1% smaller than in March 2024. The Office for National Statistics indicated that the economy's performance in the three months leading up to November showed no growth compared to the previous quarter.