The UK economy grew 0.1% in November.

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The UK economy grew 0.1 percent in November, testing analysts’ estimates but marking the first expansion since August.

The monthly figure was below the 0.2 percent growth forecast by economists polled by Reuters and a 0.1 percent decline in both October and September, according to data from the Office for National Statistics.

Thursday’s data did not remove concerns about the performance of the UK economy after a shock, with slower growth accompanied by persistent inflationary pressures, which contributed to a sharp rise in borrowing costs at the start of the year.

It follows official data on Wednesday that showed inflation eased to 2.5 percent in December from 2.6 percent last month.

The economy barely grew in the three months to September, compared with a 0.4 percent expansion in the previous quarter. It grew by 0.7 percent between January and March last year.

In December, the Bank of England said it expected no growth in the final three months of the year, compared to the 0.3 percent expansion it had forecast in November.

In the year After cutting borrowing costs twice in 2024, the BoE left interest rates unchanged at 4.75 percent. Markets expect the bank to cut its policy rate by a quarter-point in February.

Experts polled by the FT expect the UK economy to outperform France and Germany, but Reeves warned plans to increase employers’ national insurance contributions could hurt the labor market. The chancellor announced a budget increase in October, but it will only come into effect in April.

This is a developing story.