Beautiful Virgin Islands

Wednesday, Aug 13, 2025

Recession in question as Britain’s economy achieves surprise growth in November due to World Cup

Recession in question as Britain’s economy achieves surprise growth in November due to World Cup

The economy grew by 0.1% in November, partly aided by the football World Cup, according to official figures which call into question predictions the UK is already in recession.
Data from the Office for National Statistics (ONS) showed pressure on demand from the effects of high inflation, but a boost from people packing pubs and bars to watch events unfold in Qatar.

Economists had predicted a negative growth figure - of around 0.2%.

The figure for November came on the back of a positive growth reading the previous month, largely explained by activity getting back to normal after disruption to output from the late Queen's death.

The additional bank holiday for the funeral in September saw most businesses close.

The Bank of England is among public bodies to have forecast that the UK fell into recession during the third quarter of 2022.

Should a reading by the ONS for the October to December period show a negative growth figure, then the economy will have met the criteria for recession: two consecutive quarters of contraction.

A fairly severe downwards shift in output last month is seen as unlikely.

The ONS said that gross domestic product (GDP) fell by 0.3% in the three months to November.

That incorporates the decline of 0.6% in output measured during September and the 0.5% recovery in October.

ONS director of economic statistics Darren Morgan said: "The economy grew a little in November, with increases in telecommunications and computer programming helping to push the economy forward.

"Pubs and bars also did well as people went out to watch World Cup games.

"This was partially offset by further falls in some manufacturing industries, including the often-erratic pharmaceutical industry, as well as falls in transport and postal, partially due to the impact of strikes.

"Over the last three months, however, the economy still shrank - mainly due to the impact of the extra bank holiday for the funeral of Her Majesty Queen Elizabeth in September."

He told BBC Radio 4's Today programme that the economy would need to shrink by 0.6% or more in December for the fourth quarter of 2022 to contract as a whole - triggering a technical recession.

The prospect of avoiding such a downturn is easing not only in the UK but across Europe and in the US too, but it does not mean that all is rosy.

Business groups warned that many sectors were struggling - and needed the support of government to protect jobs as energy-led costs continue to stifle orders and investment.

Pressure on squeezed consumers too is set to intensify as the Bank of England is still forecast to maintain interest rate increases to help inflation ease over the first half of 2023, raising bills in the process as mortgage costs climb.

In its reaction to the GDP data, the living standards-focused think-tank the Resolution Foundation said that while a 2022 recession was now likely to have been avoided, family incomes were still shrinking.

Jonathan Moyes, head of investment research at the Wealth Club investor service, said of the UK's prospects: "We have seen retailers report stronger than expected earnings reports for Q4 over the past week, and it appears a stronger than expected consumer services, and services more broadly, have helped the UK economy defy gloomy expectations.

"It may be too soon to mark the beginning of a turn in sentiment for the UK, but a quiet consensus appears to be forming.

"Energy prices are falling sharply, China is reopening and interest rate expectations have eased significantly," he wrote.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Trump considers lawsuit against Powell over Fed renovation costs
Trump Criticizes Goldman Sachs Over Tariff Cost Forecasts
Perplexity makes unsolicited $34.5 billion all-cash offer for Google’s Chrome browser
Kodak warns of liquidity crisis as debt obligations loom
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Taylor Swift announces 12th studio album on Travis Kelce’s podcast after high-profile year together
South Korean court orders arrest of former First Lady Kim Keon Hee on bribery and corruption allegations
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
JD Vance to meet Tory MP Robert Jenrick and Reform’s Nigel Farage on UK visit
Trump and Putin Meeting: Focus on Listening and Communication
Instagram Released a New Feature – and Sent Users Into a Panic
China Accuses: Nvidia Chips Are U.S. Espionage Tools
Mercedes’ CEO Is Killing Germany’s Auto Legacy
Trump Proposes Land Concessions to End Ukraine War
New Road Safety Measures Proposed in the UK: Focus on Eye Tests and Stricter Drink-Driving Limits
Viktor Orbán Criticizes EU's Financial Support for Ukraine Amid Economic Concerns
South Korea's Military Shrinks by 20% Amid Declining Birthrate
US Postal Service Targets Unregulated Vape Distributors in Crackdown
Duluth International Airport Running on Tech Older Than Your Grandmother's Vinyl Player
RFK Jr. Announces HHS Investigation into Big Pharma Incentives to Doctors
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Security flaws in a carmaker’s web portal let one hacker remotely unlock cars from anywhere
Street justice isn’t pretty but how else do you deal with this kind of insanity? Sometimes someone needs to standup and say something
Armenia and Azerbaijan sign U.S.-brokered accord at White House outlining transit link via southern Armenia
Barcelona Resolves Captaincy Issue with Marc-André ter Stegen
US Justice Department Seeks Release of Epstein and Maxwell Grand Jury Exhibits Amid Legal and Victim Challenges
Trump Urges Intel CEO Lip-Bu Tan to Resign Over Alleged Chinese Business Ties
Scotland’s First Minister Meets Trump Amid Visit Highlighting Whisky Tariffs, Gaza Crisis and Heritage Links
Trump Administration Increases Reward for Arrest of Venezuelan President Maduro to Fifty Million Dollars
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
OpenAI Launches GPT‑5, Its Most Advanced AI Model Yet
Embarrassment in Britain: Homelessness Minister Evicted Tenants and Forced to Resign
President Trump nominated Stephen Miran, his top economic adviser and a critic of the Federal Reserve, to temporarily fill an open Fed seat
The AI-Powered Education Revolution: Market Potential and Transformative Impact
Chikungunya Virus Outbreak in Southern China: Over 7,000 Hospitalized
French wine makers have seen catastrophic damage to vines that were almost ready to be harvested after the worst fires in more than 70 years burned through the south of the country
US Lawmaker Probes Intel CEO’s China Ties Amid National Security Concerns
Brazilian President Lula says he’ll contact the leaders of BRICS states to propose a unified response to U.S. tariffs
Trump Open to Meeting Putin as Soon as Next Week, with Possible Trilateral Summit Including Zelenskiy
Katy Perry and Justin Trudeau spark dating rumors, joining high stakes world of celeb-politician romances
US envoy Steve Witkoff arrived in Moscow to seek a breakthrough in the Ukraine war ahead of President Trump’s peace deadline
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Karol Nawrocki Inaugurated as Poland’s President, Setting Stage for Clash with Tusk Government
Trump Signals JD Vance as ‘Most Likely’ MAGA Successor for 2028
US Charges Two Chinese Nationals for Illegal Nvidia AI Chip Exports
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
×