UK economy flatlines in November as Labour growth push fails

The UK economy is stalling, which could prompt the Bank to cut interest rates.

The UK economy flatlined in November, researchers have suggested, as pre-Budget nerves have hit growth across the private sector.

S&P Global’s initial estimate for its purchasing managers’ index (PMI) has shown the UK economy just inching up, with firms pausing orders and investment plans before Chancellor Rachel Reeves announces sweeping tax hikes and possible spending cuts.

The composite reading for services and manufacturing was just 50.5, marginally above the benchmark figure for neutral output. The data would be consistent with no change in GDP over the month, analysts said.

The UK private sector suffered from lower growth due to a sharp deceleration in services activity compared to October.

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