UK economy returns to growth as inflation dips

The UK economy grew for the first time in three months in November, according to the Office for National Statistics (ONS).

ONS figures showed an expansion of 0.1% in GDP after the economy shrank in each of the two previous months.

But the figure was lower than economists had expected, with declines in manufacturing and business rentals and leasing.

Figures showed the services sector drove the marginal growth in November, with pubs, restaurants and IT companies performing well.

UK inflation dipped in December for the first time in three months, the ONS reported.

Prices rose 2.5% in the year to December, down from 2.6% the month before, ONS said.

The ONS said while hotel prices and tobacco prices had fallen last month, the decreases were offset by the cost of fuel and second-hand cars rising.

Ben Jones, CBI Lead Economist said:

'After a string of disappointing data, it's good to see that growth returned to positive territory in November, though the economy is still only on track for a very modest expansion at best over the final quarter of last year.

'In the wake of the Autumn Budget a mood of caution seems to have settled over UK businesses. Many firms are entering 2025 with a focus on reducing operational expenditure, which is likely to weigh on pay, hiring and investment in the months ahead.

'The government can help shift the UK's economic narrative with more determined focus on measures that could underpin growth.'

Internet link: ONS ONS CBI

About us

We at Bowen & Partners pride ourselves on our personal customer service and high client satisfaction levels.

Bowen & Partners is the trading name of Bowen Accountants Ltd. Registered in England & Wales No. 06895043

Contact details

01249 720341

Bowen Accountants Ltd, Unit 1, Gate Farm, Sutton Benger, Chippenham, Wiltshire SN15 4RE

© 2025 Bowen Accountants Ltd. All rights reserved. We use cookies on this website, you can find more information about cookies here. powered by totalSOLUTION

In accordance with the disclosure requirements of the Provision of Services Regulations 2009, our professional indemnity insurer is QBE UK Limited of QBE European Operations, 30 Fenchurch Street, London EC3M 3BD. The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.