The News in brief will return on Tuesday 2 January 2024. We wish everyone a Merry Christmas and a Happy New Year.  

The UK economy may be sliding towards recession as new Office for National Statistics figures show growth shrank between July and September, below economists’ expectations (Reuters).  

GDP contracted by 0.1 per cent after previous estimates suggested growth had been flat. In addition, there was zero growth between April and June, after it was first calculated to have risen by 0.2 per cent (BBC News).  

Chancellor Jeremy Hunt said in a statement that “the medium-term outlook for the UK economy is far more optimistic than these numbers suggest" (Sky News). 

BLACK FRIDAY DEALS BOOST UK RETAIL SALES 

British shoppers took advantage of Black Friday discounts last month, pushing up retail sales from a two-year low before the Christmas period, figures from the Office for National Statistics have shown today (The Times). An official measure of monthly retail sales rose by 1.3 per cent in November, far higher than economists’ expectations of 0.4 per cent growth.  

The ONS said a major factor behind the increase was Black Friday sales starting earlier, with many retailers holding promotional offers throughout November (Evening Standard). Most of the increase, 0.9 percentage points, came from non-food sales. 

Separately, the CBI has highlighted a downturn in sale volumes in December (The Times). The lobby group said sales were “below average” for this time of the year, with volumes falling on an annual basis for the eighth consecutive month.  

NEWS IN BRIEF

Jeremy Hunt has said in an interview with the Financial Times that lowering the cost of borrowing would be crucial for shifting the country’s economic mood, raising the prospect of the Bank of England reducing interest rates in 2024.  

Property sales and demand across the UK were almost a fifth higher in the final weeks of 2023 than a year earlier as sentiment improved, according to a survey by property website Zoopla (The Guardian).  

November was the best month for British car production growth since 2020, according to the latest industry figures from the Society of Motor Manufacturers and Traders (City AM). 

Borrowing on credit and via overdrafts will rise by £5,000 per household in the next five years, according to analysis by the Labour Party (The Guardian).