Investing.com – The UK economy returned to growth in November, but the smaller-than-expected expansion has prompted UBS to cut its GDP forecasts for 2024 and 2025.
UK rose by 0.1% from October, according to official data, after falls in September and October. However, many economists had mostly forecast a 0.2% rise.
This data incorporated the first month after Chancellor Rachel Reeves announced big tax increases for businesses in her first budget.
Ben Jones, lead economist at the Confederation of British Industry, said a mood of caution had settled over UK businesses since then.
“Many firms are entering 2025 with a focus on reducing operational expenditure, which is likely to weigh on pay, hiring and investment in the months ahead,” Jones said.
Despite a pick-up in monthly GDP growth in November, UBS calculates that the average of October and November GDP (assuming unchan