The UK economy barely recovered in November, but fell short of expectations, leaving stagflation fears hard to quell.
The Office for National Statistics said gross domestic product (GDP) grew 0.1% in November, below market expectations of 0.2%, after shrinking 0.1% in both September and October. That means the economy is still smaller than it was in June, the month before Labour came to power.
Despite a welcome cooling of inflation in December, the latest GDP data will heighten fears that Britain is trapped in a stagflation trap of rising prices and stagnant growth. The economy has grown in just two of the five months since Labour came to power. The pound fell after the data, trading at $1.2214, down 0.2%.
The Office for National Statistics said that means the UK economy will stagnate for a second consecutive quarter unless GDP growth in December is at least 0.07%. The Bank of England last month cut its fourth-quarter growth forecast to zero.
