UK economy returned to growth in November, driven by services – as it happened

Stocks extend rally; with inflation easing and sluggish economic growth, a February interest rate cut looks increasingly likely, analysts say

Britain's economy grew for the first time in three months, but eked out just 0.1% growth.

The economy grew more slowly than expected in November, giving the Bank of England more room to cut interest rates this year.

We know that in net terms growth remained flat for the three months to November therefore we are clearly far off from a state where the economy has reached escape velocity' and grows on a sustained basis.

Given the latest inflation reading yesterday, weaker than expected growth could help pave the way for faster rate cuts by the Bank of England. This could be a helpful tailwind to the economy at a time when the international outlook becomes more unpredictable.