According to official statistics, the UK economy surprisingly expanded in November thanks to a boost from the World Cup.
Despite households being squeezed by rising prices, the economy grew by 0.1% because of the demand for services in the tech industry.
Pubs and restaurants also contributed to growth, according to the Office for National Statistics (ONS), as people went out to watch football.
However, it is still uncertain if rising prices will cause the UK to enter a recession.
Despite the fact that the UK’s gross domestic product figure for November was significantly higher than expected, the overall picture still implies that the economy is stalling as a result of rising food and energy costs and consumer spending cuts.
The gain in November is a decrease from the 0.5% rise in October, which was mostly due to a rebound from firms closing in September to commemorate Queen Elizabeth II’s funeral.
The latest data, according to economists, makes it less certain whether the UK will have entered a recession at the end of the previous year.
A recession is characterized by two consecutive three-month quarters of declining economic output.
A country’s economy is not doing well if it is in a recession. Companies often make less money and the number of unemployed workers increases during a downturn. It’s more difficult for graduates and school dropouts to land their first job.
The UK’s economic production decreased by 0.3% from July to September.
From October, economic growth abruptly slowed down, in part because of strike activity.
In protest of their wages and working conditions, rail workers and Royal Mail employees staged walkouts in November. According to Darren Morgan, the ONS’s head of economic statistics, on the BBC’s Today program: “The effects of today’s strikes were clearly seen in the data.
“We saw a number of sizable declines in the warehousing, postal, and rail transportation sectors, and this industry was the biggest drag on.
“We saw reasonably large falls in rail transport, postal work, and warehousing, and this sector had the biggest drag on the economy in November.”
In December, there was additional industrial action that affected employees of the NHS and the Border Force at six UK airports. It might have an impact on the statistics released the next month, which will show whether the criteria for a recession have been met.
According to Mr. Morgan, the UK economy would need to contract by 0.6% in December to enter a recession.
Despite what may have appeared to be a momentary improvement in November, the Federation of Small Businesses (FSB) issued a warning that economic worries had not yet been allayed.
Martin McTague, the FSB’s national head, said: “Policymakers cannot take their success for granted because expenses are still high for both small businesses and households. Reduced inflation is necessary, energy prices are still quite unclear, and consumer confidence is stubbornly low.”
Source: BBC
