2021.01.1507:04:00UTC+00UK GDP Contracts In November

The UK economy contracted in November but at a slower than expected pace, data released by the Office for National Statistics revealed Friday.

Gross domestic product shrank 2.6 percent on month in November but slower than the 5.7 percent fall economists' had forecast. The decline reversed a 0.6 percent rise posted in October.

The economy contracted in November after rising for six straight months.

November GDP fell back to 8.5 percent below the levels seen in February 2020. GDP declined 8.9 percent in the twelve months to November.

While construction output continued to increase in November, the output in headline GDP, services, and production declined from the previous month.

Industrial production dropped marginally by 0.1 percent but the manufacturing sector grew by 0.7 percent. At the same time, construction output advanced 1.9 percent.

The index of services declined 3.4 percent, the largely due to the 44 percent decline in accommodation and food services activities. This was the third largest fall on record.

Another report from the ONS showed that the visible trade deficit widened to GBP 16.01 billion in November from GBP 13.29 billion in the previous month. Meanwhile, the surplus on services trade increased to GBP 11.01 billion from GBP 10.95 billion.

As a result, the total trade deficit totaled GBP 4.99 billion versus a GBP 2.33 billion shortfall in October.