The Fort Worth Press - UK economy rebounds but headwinds remain for govt

USD -
AED 3.672989
AFN 71.498384
ALL 91.375029
AMD 391.160458
ANG 1.790208
AOA 917.000052
ARS 1072.800695
AUD 1.589195
AWG 1.8025
AZN 1.705782
BAM 1.811219
BBD 2.018475
BDT 121.482648
BGN 1.802698
BHD 0.376971
BIF 2926
BMD 1
BND 1.343366
BOB 6.907601
BRL 5.692802
BSD 3.495
BTN 85.449031
BWP 13.836501
BYN 3.271549
BYR 19600
BZD 2.008011
CAD 1.432565
CDF 2870.999759
CHF 0.88285
CLF 0.024908
CLP 955.839761
CNY 7.268101
CNH 7.280205
COP 4153.75
CRC 502.211006
CUC 1
CUP 26.5
CVE 102.050366
CZK 22.988495
DJF 177.720185
DKK 6.87673
DOP 63.324964
DZD 133.712147
EGP 50.568902
ERN 15
ETB 129.849787
EUR 0.921645
FJD 2.322499
FKP 0.773835
GBP 0.770995
GEL 2.760391
GGP 0.773835
GHS 15.454482
GIP 0.773835
GMD 72.127796
GNF 8649.682527
GTQ 7.713223
GYD 209.94982
HKD 7.78277
HNL 25.564942
HRK 6.941603
HTG 130.445587
HUF 372.296894
IDR 16718.576893
ILS 3.701965
IMP 0.773835
INR 85.554357
IQD 1308.299078
IRR 42104.284763
ISK 133.051944
JEP 0.773835
JMD 156.330273
JOD 0.70906
JPY 150.114501
KES 129.247253
KGS 86.535048
KHR 3993.237165
KMF 455.492709
KPW 900.019816
KRW 1471.238741
KWD 0.308329
KYD 0.831751
KZT 503.440561
LAK 21634.158301
LBP 89322.563868
LKR 294.670386
LRD 199.943579
LSL 18.386538
LTL 2.95274
LVL 0.60489
LYD 4.811016
MAD 9.629604
MDL 17.958258
MGA 4670.178386
MKD 56.942607
MMK 2099.510008
MNT 3481.383862
MOP 8.013924
MRU 39.697342
MUR 45.624205
MVR 15.4421
MWK 1731.877317
MXN 20.45005
MYR 4.436466
MZN 63.884802
NAD 18.386538
NGN 1536.893581
NIO 36.760755
NOK 10.40773
NPR 136.951137
NZD 1.744181
OMR 0.384995
PAB 1
PEN 3.668903
PGK 4.090104
PHP 57.238189
PKR 279.631053
PLN 3.872133
PYG 7946.798552
QAR 3.639572
RON 4.608694
RSD 108.488768
RUB 84.529386
RWF 1418.368583
SAR 3.74987
SBD 8.500308
SCR 14.484863
SDG 600.465319
SEK 9.913065
SGD 1.343437
SHP 0.785843
SLE 22.830348
SLL 20969.501083
SOS 570.385514
SRD 36.855947
STD 20697.981008
SVC 8.749972
SYP 13002.468687
SZL 18.386538
THB 34.186323
TJS 10.900219
TMT 3.497766
TND 3.103211
TOP 2.407834
TRY 37.92291
TTD 6.767183
TWD 33.248604
TZS 2646.107198
UAH 41.255737
UGX 3649.561079
UYU 42.148301
UZS 12911.275778
VES 69.589677
VND 25640.752098
VUV 123.375609
WST 2.83707
XAF 607.323613
XAG 0.029609
XAU 0.00032
XCD 2.707403
XDR 0.752731
XOF 607.323613
XPF 110.484353
YER 246.006073
ZAR 18.840565
ZMK 9001.19551
ZMW 28.143801
ZWL 321.999592
  • RYCEF

    -0.1800

    9.87

    -1.82%

  • CMSC

    -0.0100

    22.43

    -0.04%

  • RBGPF

    0.0000

    68

    0%

  • SCS

    0.0450

    11.365

    +0.4%

  • BCC

    1.7200

    100.63

    +1.71%

  • NGG

    -0.1900

    65.59

    -0.29%

  • BP

    -0.0530

    33.757

    -0.16%

  • BTI

    -1.0430

    40.057

    -2.6%

  • GSK

    -0.4030

    37.467

    -1.08%

  • RIO

    -0.5700

    59.66

    -0.96%

  • VOD

    -0.1520

    9.118

    -1.67%

  • RELX

    0.0700

    50.74

    +0.14%

  • JRI

    -0.0050

    12.975

    -0.04%

  • CMSD

    0.0400

    22.86

    +0.17%

  • AZN

    -0.3020

    72.298

    -0.42%

  • BCE

    -1.0350

    21.745

    -4.76%

UK economy rebounds but headwinds remain for govt
UK economy rebounds but headwinds remain for govt / Photo: © UK House of Commons/AFP/File

UK economy rebounds but headwinds remain for govt

Britain's economic growth rebounded less than expected in November, official data showed Thursday, dealing a fresh blow to a Labour government that is battling headwinds.

Text size:

Gross domestic product expanded 0.1 percent in the month after GDP contracted 0.1 percent in October, the Office for National Statistics (ONS) said in a statement.

Analysts' consensus forecast had been for growth of 0.2 percent in November.

The data offsets a slight reprieve for Prime Minister Keir Starmer and his finance minister Rachel Reeves on Wednesday when official data revealed an unexpected fall to UK inflation in December.

Britain's economy has stagnated since Labour won a general election in July, which saw the party end 14 years of rule by the Conservatives having pledged to drive growth.

But Reeves has faced calls from the main opposition Conservatives to resign following a recent spike in state borrowing costs and a hefty drop in the pound.

"I am determined to go further and faster to kickstart economic growth, which is the number one priority in our plan for change," Reeves said in a statement following the latest GDP data.

"That means generating investment, driving reform and a relentless commitment to root out waste in public spending."

She added: "I will fight every day to deliver that growth and put more money into working people's pockets."

- 'Gloomy business mood' -

The finance minister's maiden budget in October included tax rises for businesses -- a decision blamed for Britain struggling to grow its economy in recent months.

Reeves defended her brief record during a heated exchange in parliament on Tuesday, while Starmer on Wednesday insisted she would remain chancellor of the exchequer "for many, many years".

Following the growth data, yields on UK government bonds steadied after having cooled significantly Wednesday.

The London stock market was up 0.6 percent in early trading and the pound slid against the dollar and euro, as traders reacted also to movements in the wider global economy.

"With inflation easing and sluggish economic growth, a 25 basis points rate cut by the Bank of England in February seems increasingly likely," noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.

"UK government bond yields have felt an immediate impact, pulling back yesterday from multi-decade highs, offering some relief to risk-on investors and borrowers alike."

Some analysts warned, however, that the UK economy may have contracted overall in the fourth quarter of last year.

Looking at 2025, "tighter financial conditions and a gloomy business mood on the back of higher taxes and a potential escalation in trade conflicts could set back business investment", forecast Yael Selfin, chief economist at KPMG UK.

- Services boost -

The ONS said growth to services resulted in the UK economy expanding slightly in November.

Production output dropped 0.4 percent but construction rebounded 0.4 percent in the month.

"Services grew a little, with wholesaling, pubs and restaurants and IT companies all doing well, partially offset by falls in accountancy and business rental and leasing," noted ONS director of economic statistics, Liz McKeown.

She added that production declined further, with "falls across a range of manufacturing industries and oil and gas extraction companies".

D.Ford--TFWP