Economic Buzz: UK economy returns to growth in November

The UK economy recovered at a stronger-than-expected pace in November, driven by a surge in car manufacturing and services output, official data showed on Thursday.

Gross domestic product logged a monthly growth of 0.3 percent, reversing the 0.1 percent drop seen in October, the Office for National Statistics said.

ONS data showed that economic growth was underpinned by the 0.3 percent rise in services output and the 1.1 percent gain in industrial output. However, construction registered a 1.3 percent fall.

Manufacturing output moved up 2.1 percent in November as there was a surge of 25.5 percent in the manufacture of motor vehicles, trailers and semi-trailers.

On a yearly basis, real GDP advanced 1.4 percent in November, which was stronger than the expected increase of 1.1 percent.

In the three months to November, GDP grew only 0.1 percent from the previous three months. This followed no growth in the three months to October.

GDP expanded 1.3 percent in the three months to November from the same period last year.

Another data showed that the visible trade deficit narrowed to GBP 23.7 billion from GBP 24.2 billion in the previous month. However, the shortfall was bigger than forecast of GBP 20.3 billion. The total trade deficit fell to GBP 6.1 billion from GBP 6.5 billion a month ago.

Powered by Commodity Insights