Economy returns to growth but less than expected – Chamber

All eyes are on the Chancellor to set out her agenda for driving growth and investment after the UK economy grew by less than expected, business leaders said today.

The UK economy just about returned to growth in November after two months of contraction, the Office for National Statistics said.

Gross domestic product (GDP), the standard measure of an economy's value and everything it produces, grew by 0.1 per cent.

Analysts predicted it would grow by 0.2 per cent.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “The Chancellor will no doubt be relieved that the economy grew in November following the announcements made at the Autumn Budget, albeit slightly lower than many analysts predicted.

“With the prospect of an interest cut on the table, the Government will be aware of the significant inflationary pressures that remain in play - particularly with businesses facing the need to absorb higher national insurance costs in the spring.

“The Chancellor will need use the upcoming Comprehensive Spending Review to set out her stall on how she will drive investment, unlock growth across the regions and turbocharge international trade if we are to emerge from this period of tepid growth.”