UK economy grows in contrast to Bank of England’s recession forecast

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.”

But the benefit of these highly demanded sectors was slowed down 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.

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.”

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.

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