Still, with GDP shrinking by -0.2% in the three months to November, recession risks are looming large.
The UK economy managed to technically avoid a recession with November’s Gross Domestic Product (GDP) figure showing better-than-expected growth, rising 0.3% over the month, the strongest growth in five months - but this only counteracts the -0.3% drop seen in October.
December’s GDP print (to be announced on 15 February) will all but confirm whether the UK entered a recession in the fourth quarter or not given that Q3 was contractionary. But a flatlining economy - at best - is hardly something that will embolden Prime Minister Sunak in this crucial election year.
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