Economy unexpectedly grows following World Cup boost

The UK economy unexpectedly grew in November, aided by a boost from the football World Cup, according to new figures revealed today.

New data from the Office for National Statistics revealed GDP - a key economic measure of services, construction and manufacturing output - grew by 0.1 per cent.

Many economists had predicted a negative growth figure of around 0.2 per cent.

The ONS said the economy received a boost from people flocking to pubs and bars to watch the World Cup, which took place in Qatar during November and early December.

The services sector grew by 0.2 per cent after growth of 0.7 per cent in October, while output in consumer-facing services grew by 0.4 per cent in November 2022, following growth of 1.5 per cent the previous month.

However, production output decreased by 0.2 per cent in November after a fall of 0.1 per cent in October.

The construction sector was flat in November after growth of 0.4 per cent in the previous month.

Raj Kandola (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Despite the brief uplift we saw in retail activity in November once the World Cup started, the broader picture tells a different story and economic growth remains subdued.

“With businesses battling with sky high energy prices, record levels of inflation and labour market challenges, activity is likely to remain sluggish as we head into the spring.

“Nevertheless, early analysis from our latest Quarterly Business Report reveals that businesses are looking ahead to this year with cautious optimism as the majority expect to their turnover to increase over the next 12 months.

“With global energy prices stabilising over the last few months, all eyes will now turn to the Bank of England to see if they continue with the same direction of travel in regards to interest rates - a significant cold snap or a change of tactic from Russia could soon change the landscape again. ”