UK economy disappoints despite return to growth

Published On Jan 16, 2025, 2:01 AM

The UK economy experienced a slight growth of 0.1% in November after three months of declining performance, driven by increased trade in pubs, restaurants, and the construction sector. Despite this minor improvement, experts warn that stagnant growth might continue, particularly with impending tax rises expected in April. Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer acknowledged these challenges but emphasized that growth is a gradual process. Concerns over business investment and consumer spending have been noted, and expectations for a potential interest rate cut by the Bank of England are rising due to the recent economic climate and falling inflation.