Data published by the Office for National Statistics (ONS) showed that the economy expanded by 0.3% in November, offsetting the October drop (-0.3%). Economists had expected GDP to grow by 0.2%.
Services output grew by 0.4% in November and was the main contributor to the monthly growth in GDP. This follows a fall of 0.1% in October. The main contributor to the monthly growth in services in November was information and communication, which saw growth of 1.5% on the month, following a 0.9% fall in October. Production output rose 0.3%, as expected, after falling 1.3% in October. Manufacturing grew by 0.4% in November, with growth in 9 of the 13 subsectors, after a fall of 1.2% in October. Consensus estimates suggested an increase of 0.3%. The construction sector fell by 0.2% in November after a fall of 0.4% in October. Output in consumer-facing services grew by 0.6% in November, and remains 5.8% below pre-coronavirus levels (February 2020). The largest positive contribution came from retail trade, except for motor vehicles and motorcycles, which grew by 1.3%.
Meanwhile, from September to November, real GDP fell by 0.2% compared to the previous three-month period (through August). Services showed no growth, production output fell by 1.5% and construction fell by 0.6% over the same period.
In annual terms, GDP grew by 0.2%, as expected, after a 0.1% contraction in October (revised from +0.3%).