The UK's economy grew by just 0.1 per cent in November, below forecasts of 0.2 per cent, according to the Office for National Statistics (ONS). This subdued figure underscores the continued weakness in Britain's recovery as Labour's new government grapples with stubborn inflation, lukewarm consumer confidence, and looming global trade risks, all contributing to a challenging economic environment.
Rachel Reeves, the chancellor, acknowledged that while the economy had inched forward, more substantial progress will "take time". The latest three-month data from the ONS confirms zero growth over the period to November, which further highlights the uphill battle facing the government in stimulating economic momentum and addressing the root causes of stagnation.
Despite the lacklustre GDP figures, equity markets were buoyant. The FTSE 100 closed up 1.1 per cent, or 90.77 points, at 8,391.90, indicating a degree of resilience in financial markets amidst concerns about economic growth, showing that investors are balancing caution with optimism aided by lower inflation figures.
Reeves defended her plans, insisting that she has ended the "instability" wrought by the Conservatives: "This new government has come in with a determination, a No 1 mission, to grow the economy. That takes time," she said, emphasizing the government's long-term strategy for economic recovery and the challenges inherent in implementing significant fiscal changes.
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