The UK economy saw an upturn in November 2023, as reported by the Office for National Statistics (ONS).
MonthlyGDP experienced a notable upswing of 0.3%, primarily driven by the robust performance of the services sector. This growth comes as a relief after the 0.3% contraction observed between September and October.
Economists, who had anticipated a modest 0.2% expansion, were pleasantly surprised by November's figures. ONS chief economist Grant Fitzner attributed this growth to increasedactivities in several service industries, notably retail, car leasing, and computer gaming.
The boost in sales during Black Friday and a reduction in strike actions were also significant contributors to the positive economic shift in November.
This turnaround is especially significant following a slight contraction in the three months leading to September. The latest data helps alleviate fears of a recession in the last quarter of 2023, often defined by economists as two successive quarters of declining GDP.
Martin McTague, national chair of the Federation of Small Businesses, said:
"Small businesses are still in the thick of it with this modest rise in GDP in November, which indicates an economy still bouncing along the bottom. Increased retail trade growth induced by Black Friday led to somewhat higher consumption in November as customers sought sales. But that doesn't take away the core problem: the costs of running a business are now markedly up.
"High base rates have led to subdued consumer demand, greater costs of finance and soaring rent. Employment costs remain challenging due to labour shortages, impending rises in the National Living Wage and forthcoming changes to pensions legislation."
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