LONDON (Reuters) – Britain’s economic output rose for the first time in three months in November, but less than expected, rising 0.1% from October, data from the Office for National Statistics showed on Thursday.
The figures represented the first measure of gross domestic product in the period since Finance Minister Rachel Reeves’ October 30 Budget, which included an increase in the tax burden on employers.
A Reuters poll of economists had forecast monthly growth of 0.2%.
In both October and September, British GDP decreased by 0.1 percent.
“The economy remains broadly unchanged, having grown slightly in November following two small declines in previous months,” said Liz McKeown, ONS director of economic statistics.
Reeves said after the data release that she is “determined to go further and faster to drive economic growth.”
Sterling fell, falling about a fifth of a cent against the US dollar.
Britain’s economy, which has been slow to recover from the COVID-19 pandemic, showed zero growth in the third quarter as uncertainty over the upcoming budget hit businesses. The Bank of England expects another cut in the last three months of 2024.
Worries about weak growth contributed to a recent surge in government borrowing costs before falling sharply on Wednesday after a surprise drop in British inflation and US price growth data.
The Labor government says it is targeting the fastest growth in gross domestic product per capita among the Group of Seven advanced economies.
