UK Economy Sees Little Growth in November as Inflation Rages On

The economy in the United Kingdom rose a little in November with a kick off of the FIFA World Cup, boosting consumption in the group country. However, the industry and construction sector continued to fall under high inflation and energy prices.

From October, gross domestic product rose by 0.1% with the biggest contribution to growth coming from consumer-facing services that saw a slight expansion by 0.4%. 

In the meantime, manufacturing output fell by 0.5% with construction output came out flat.

As a result, GDP over three months was down by 0.3% through November, a measure compared with the last three months.

Service fell 0.1%, and production fell 1.4%. The only growth came from the construction sector, which rose 0.3%.

These numbers represented the economy of the U.K. that was smaller than it was before the spread of the pandemic and fell below where pre-pandemic expected.

Naeem Aslam, chief market strategist with AvaTrade, said that it was “not so bad” but “will get ugly” in the coming months as the high inflation continues to destroy the affordability of consumers.