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The British economy grew by 0.1 per cent in November, falling short of analysts' expectations but still marking the first expansion since August.
The monthly figure was below the 0.2 percent growth forecast by economists polled by Reuters, and comes after a 0.1 percent contraction in both October and September, according to data published by the Office for National Statistics on Thursday.
Thursday's data will not dispel concerns about the performance of the British economy after fears of stagflation, where slow growth is accompanied by persistent price pressures, contributed to a sharp rise in borrowing costs at the start of the year.
This follows official data released on Wednesday that showed an unexpected drop in inflation to 2.5 percent in December from 2.6 percent the previous month.
The economy failed to grow in the three months to September, marking a sharp slowdown from the 0.4 per cent expansion in the previous quarter. Growth reached 0.7 percent between January and March last year.
In December, the Bank of England said it expected no growth in the final three months of the year, down from the 0.3 per cent expansion it expected in November.
The Bank of England left interest rates unchanged at 4.75 percent last month after cutting borrowing costs twice in 2024. Markets largely expect the bank to cut interest rates by a quarter of a percentage point in February.
Experts polled by the Financial Times expect the British economy to outperform France and Germany, but they warned that Reeves' plans to increase the National Insurance contribution for employers could harm the labor market. The Chancellor announced an increase in her budget for October, but it will not take effect until April.
This is a developing story
