Black Friday shoppers helped UK economy bounce back better than expected, figures show
BLACK Friday shoppers helped the economy bounce back better than expected, figures show.
Strong performances in the retail, car leasing and computer games sectors meant GDP expanded by 0.3 per cent in November.
But it is touch-and-go if we avoid a recession, say experts.
The services sector grew by 0.4 per cent — the biggest contributor to November’s improvement.
It followed a disappointing October when GDP fell 0.3 per cent as poor weather hit manufacturing and construction.
Chancellor Jeremy Hunt said: “While growth in November is welcome news, it will be slower as we bring inflation back to its two per cent target.
“But we have seen that advanced economies with lower taxes have grown more rapidly, so our tax cuts for businesses and workers put the UK in a strong position for growth.”
But the UK is on the verge of a technical recession as between July and September the economy shrank by 0.2 per cent.
Two consecutive quarters of shrinking economy would be classed as a recession.
A contraction or even flat output in December may put the country in a shallow recession.
Investec’s Sandra Horsfield said: “It remains touch-and-go whether the economy tipped into a technical recession in the second half of 2023.
“In either case, a better description might be stagnation.
“The recession, if it did occur, looks to have been as mild as they come.”
Richard Carter, head of fixed interest research at Quilter Cheviot, says the slow growth piles yet more pressure on the Bank of England to cut interest rates to help it speed up.