UK Economy Grows 0.1% in November as Services Sector Rebounds

The UK economy grew by 0.1% in November 2024, driven by a rebound in the services sector, according to the Office for National Statistics (ONS). This modest growth follows an unrevised fall of 0.1% in October 2024 and marks a slight improvement in the UK's economic performance.

The services sector was the main contributor to the 0.1% growth in GDP in November 2024, with output increasing by 0.1% after falling by 0.1% in October 2024. Of the 14 subsectors, output increased in seven, two showed no growth, and five saw output decline in November 2024. The services sector's performance had a significant impact on overall economic growth, helping to offset declines in production and construction, which fell by 0.4% and 0.3% respectively in the same month.

Human health and social work activities was the largest positive contributor to the rise in services output in this three-month period, increasing by 1.3% in the three months to November 2024, compared with the three months to August 2024. NHS junior doctors held industrial action in the three months to August 2024 (27 June to 2 July 2024), with NHS England reporting that 61,989 acute inpatient and outpatient appointments were cancelled as a result. The next largest contributor was professional, scientific, and technical activities, where output increased by 0.6%. The largest negative contribution on the three months to November 2024 was administrative and support service activities, which fell by 1.3%.

The decline in production output in November 2024 was driven by a decline in manufacturing, which fell by 0.7% in the three months to November 2024. This was the largest negative contribution to the overall decline in production output. Construction output grew by 0.4% in November 2024, following a fall of 0.3% in October 2024, and also grew by 0.2% in the three months to November 2024.

Looking over the longer term, GDP is estimated to have grown by 1.0% in the three months to November 2024, compared with the three months to November 2023. Over this period, services grew by 1.5%, while production fell by 1.6% and construction fell by 0.2%. Compared with the same month a year ago, GDP is estimated to be 1.0% higher in November 2024 than in November 2023.

In conclusion, the UK economy grew by 0.1% in November 2024, driven by a rebound in the services sector. The services sector's performance had a significant impact on overall economic growth, helping to offset declines in production and construction. The decline in production output was driven by a decline in manufacturing. Looking over the longer term, GDP is estimated to have grown by 1.0% in the three months to November 2024, compared with the three months to November 2023.