Resilience and Growth: Why November’s GDP Figures are a Win for UK Business
At Zyla Accountants, we always keep a close eye on the pulse of the UK economy.
This morning’s data from the Office for National Statistics (ONS) brought a welcome breath of fresh air: the UK economy grew by 0.3% in November, comfortably outpacing the 0.1% growth many economists had predicted.
Coming off the back of a slight contraction in October, this rebound is a testament to the resilience of British businesses. Despite the noise surrounding the Autumn Budget, the underlying momentum remains positive as we move further into 2025.
Services Lead the Way
The primary engine of this growth was the services sector, which expanded by 0.3%. What we found particularly interesting, and perhaps unsurprising given the complex tax landscape lately, was the ONS's highlight of the professional services sector.
Accounting, bookkeeping, auditing, and tax consultancy were among the largest contributors to this growth. It’s clear that in times of fiscal change, businesses value robust financial advice more than ever. Whether it’s navigating new tax regulations or strategic planning, professional services are playing a vital role in keeping the UK’s economic gears turning.
| Sector | Performance | Key Insight |
|---|---|---|
| Services | +0.3% | Driven by professional and technical activities. |
| Production | +1.1% | A strong performance despite manufacturing hurdles. |
| Construction | -1.3% | Highlights the need for the government’s housebuilding push. |
| Three-Month Trend | +0.1% | A steadier, more "underlying" view of economic health. |
Markets React: Is a Rate Cut on the Horizon?
The financial markets have responded with optimism. UK borrowing costs have dipped to their lowest level in over a year, fuelled by the hope that the Bank of England may have more room to maneuver with interest rate cuts.
For our clients, lower rates mean more than just cheaper loans; they signal a potential easing of the cost-of-living pressures and a more fertile environment for business investment.
Looking Ahead
While the growth in services and production is encouraging, the dip in construction reminds us that there is still work to be done. However, with the National Institute of Economic and Social Research (NIESR) forecasting 1.4% growth for 2025, the outlook is significantly brighter than this time last year.
Next week will be another pivotal moment as we look toward new inflation and unemployment data. Chancellor Rachel Reeves has also hinted at further support for the hospitality sector, which could provide another boost to the high street.
How Zyla Can Help
In an economy that is "beating the forecasts," the right financial strategy can help your business do the same. If the recent budget or the shifting interest rate environment has you rethinking your 2025 roadmap, we are here to help you navigate the numbers with confidence.