In November 2024, the UK economy showed a modest recovery with a 0.1 percent growth in monthly real GDP, driven by a service sector rebound. This followed a 0.1 percent contraction in October, marking a stabilisation in overall activity. However, the three months to November 2024 remained flat, indicating stagnation in broader economic growth.

In contrast, the production sector faced ongoing challenges, with output declining by 0.4 percent in November and 0.7 percent over the three-month period, largely due to persistent weaknesses in manufacturing. Construction provided a bright spot, posting a 0.4 percent growth in November after a 0.3 percent decline in October. This sector also expanded by 0.2 percent over the three-month period, offering some resilience amid mixed economic signals.

Overall, while November's modest growth highlights recovery in key areas like services and construction, persistent declines in production and a stagnant quarterly performance underscore lingering economic headwinds. The latest update takes the RPI to minus 26 and the RPI-P to minus 31, meaning that economic activities are generally lagging behind market expectations.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. The monthly report is based on output data only as the income and expenditure series are not available.

GDP covers all aspects of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market investors like to see healthy economic growth because robust business activity translates to higher corporate profits. GDP contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. However, the monthly report is quite limited and only provides data on the main output sectors. More detailed information is available in the quarterly reports.