UK economy grew by only 0.1% in November

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The UK economy grew by 0.1% in November as consumers headed to the shops in the run-up to Christmas and pubs and bars enjoyed a boost from the World Cup.

It was a slowdown compared with 0.5% growth in October, when the economy rebounded from a weak September, when many businesses closed for the Queen’s funeral. It was, however, better than forecasts, with City economists predicting the economy would shrink by 0.2 % in November.

The onset of a recession in the manufacturing sector limited the strength of the economy and meant that over the three months to November the economy contracted by 0.3%, according to the Office for National Statistics.

The ONS said mining and construction also offset the effect of the decline in manufacturing.

The Bank of England has warned that the UK is probably set for a long recession, as defined by two consecutive quarters of contraction. The economy shrank by 0.3% in the third quarter between July and September, and figures for the October to December period will be published next month, confirming whether or not the economy entered recession at that point.