November saw ‘surprisingly robust’ GDP figures with a rise of 0.3%, counteracting October’s fall of 0.3%
The main contributor to growth was the services sector with 0.4% growth for the month while the information and communication sector was the biggest contributor to the overall figure, seeing a 1.5% improvement for the month.
Additionally, the accounting profession also had higher revenues for November, with a 0.6% rise to £3.94bn, an increase of 2.5% from the previous November.
Julie Matheson, accounting industry regulatory partner at Kingsley Napley said: ‘The accounting sector has contributed to the country’s surprise economic growth. November’s figures are indicative of how the sector can often track the wider macro situation and reminds us that it should be prepared to respond to fluctuations in demand.’
The manufacturing sector declined by 1.5% over three months to November but had a more positive turn for the month with 0.3% growth. However, this was not enough to counteract October’s fall of 1.3%. This was the first monthly growth since June 2023.
After a fall of 1.2% in October nine out of the 13 sub-sectors experienced growth with the production of basic pharmaceutical products the biggest contributing factor, which was up by 4.8%.
Danni Hewson, head of financial analysis at AJ Bell said: ‘November’s surprisingly robust GDP figures could suggest that falling inflation is finally having an impact on people’s sense of wellbeing, but in reality, it seems many were simply tempted by Black Friday sales which in turn boosted retailers, couriers and warehouse operators.
‘In truth, the economy feels pretty stuck in the mud and though it did manage to inch forward in November it could just as easily get pulled in the opposite direction in the months to come.’
The construction sector took another hit with the monthly output down 0.6% over the three months to November and 0.2% for November itself. A 2% fall in new work was the biggest factor in the decline with new housing starts decreasing by 3.9% and new infrastructure work also taking a 2% dip.
Richard Carter, head of fixed interest research at Quilter Cheviot said: ‘The figure shows just how precarious the situation is for the UK economy and piles yet more pressure onto the Bank of England to cut interest rates. The Bank has managed not to tip the UK into a recession to date, but it is looking increasingly likely that its luck may be coming to an end.
’Economic conditions are incredibly tough, and the UK faces a real challenge when it comes to avoiding recession as we move further into the winter months. The UK is currently on the cusp, and continued weak growth or even contraction cannot be ruled out.’