UK avoiding a technical recession, not broader economic malaise

Friday’s GDP figures are far from reassuring, despite a growth of 0.1% in November, and it is clear that the UK economy is still struggling to gain momentum.

T he Office for National Statistics (ONS) has released on Friday figures showing that the UK’s Gross Domestic Product (GDP) increased by a mere 0.1% in November 2022, with services up 0.2%, manufacturing down 0.5%, and construction remaining flat at 0%.

“There was anecdotal evidence to suggest that the FIFA World Cup had benefited some businesses with pubs, restaurants and units involved in the sale of wine, pizza delivery, advertising and the provision of security for licensed premises reporting an increase in turnover,” the ONS explains.

“While the direct impact of the strikes by postal and rail workers can be seen in the rail transport and postal and courier activities industries, we are not able to isolate the impact of these strikes from other factors across the wider economy. However, there was anecdotal evidence to suggest this industrial action had an impact across a wide range of industries, for example, wholesale trade and manufacture and repair of jewellery.”

Friday’s figures are far from reassuring, and it is clear that the UK economy is still struggling to gain momentum.

The stagnation of the construction industry is particularly concerning, given that it accounts for around 6% of the UK’s GDP.

This lack of growth is indicative of a broader economic malaise, and it is clear that the government must take action to stimulate the sector.

Furthermore, the decline in manufacturing is a worrying sign that the UK’s economic prospects are not as rosy as some had hoped.

Overall, the latest GDP figures from the ONS are deeply disappointing.

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— AUTHORS —

▫ PMP News reporting.

Sources

▪ Text: This piece was first published in PMP Magazine on 13 January 2023.
▪ Cover: Unsplash/Bruno Martins. (Licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.)