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The UK economy grew by 0.1 percent in November, leaving the Bank of England’s recession prediction in tatters. Experts at the Office for National Statistics said the rise in GDP was down to a solid technology sector and high turnout to pubs amid the FIFA world cup this winter although it said the benefits were “partially offset” by falls in transport and postal partly because of strikes.
Overall, the country’s service sector grew by 0.2 percent in November with the FIFA world cup in Qatar giving a raise for pubs and other food and beverage service companies.
Analysts had predicted the economy would tank by 0.3 percent in November.
ONS director of economic statistics Darren Morgan said: “The economy grew a little in November, with increases in telecommunications and computer programming helping to push the economy forward.
“Pubs and bars also did well as people went out to watch World Cup games.”
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But the benefit of these highly demanded sectors was slowed by problems in various industries including pharmaceutical, transport and postal.
Mr Morgan added: “This was partially offset by further falls in some manufacturing industries, including the often-erratic pharmaceutical industry, as well as falls in transport and postal, partially due to the impact of strikes.
“Over the last three months, however, the economy still shrank – mainly due to the impact of the extra bank holiday for the funeral of Her Majesty Queen Elizabeth in September.”
The construction sector showed zero growth while the output of the manufacturing industry dropped by 0.5 percent.
In November, the Bank of England warned the UK would be hit by its longest recession since records began.
It warned the UK would fall into a recession at the end of 2022 that would last for the whole of 2023 as well.
In a Monetary Policy Report published in November, the bank of England wrote the UK economy is “expected to remain in recession” in 2023 and the first half of 2023.
Bank of England governor Andrew Bailey said the country had a “tough road ahead” early that month as the Bank of England raised interest rates to three percent from 2.23 — the biggest increase since 1989.
GDP grew 0.1% in November with
▪️ services up 0.2%
▪️ manufacturing down 0.5%
▪️ construction flat (0.0%)
➡️ https://t.co/TbV9f82F6z pic.twitter.com/fqg8kNF4c6
The UK is still struggling with high levels of inflation despite a slight drop recently, which is squeezing household budgets and driving up the cost of living.
Chancellor of the Exchequer Jeremy Hunt said: “We have a clear plan to halve inflation this year – an insidious hidden tax which has led to hikes in interest rates and mortgage costs, holding back growth here and around the world.
“To support families through this tough patch, we will provide an average of £3,500 support for every household over this year and next – but the most important help we can give is to stick to the plan to halve inflation this year so we get the economy growing again.”
Experts have recently warned taxes and energy bills are likely to rise by roughly £1,900 in 2023.Torsten Bell, chief executive of The Resolution Foundation, who made the predictions, told Express.co.uk at the end of December: “From a cost-of-living perspective, 2022 was a truly horrendous year – far worse than any year in the pandemic or financial crisis.
“2023 should see the back of double-digit inflation, but it looks set to be a groundhog year for many families whose incomes look set to fall by just as much as they did in 2022.”
The pledge comes after an Express.co.uk poll suggested many people think the cost-of-living crisis is the biggest problem in Britain and that Sunak should concentrate on it.
More than half of the survey of 1,633 adults said energy prices and cost of living are the most significant crises.
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