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The UK economy grew by 0.1 percent in November, missing analysts' expectations but marking the first expansion since August.
The monthly figure was less than the 0.2 percent growth forecast by Reuters and follows a 0.1 percent contraction in October and September, according to data published Thursday by the Office for National Statistics.
Thursday's data will not allay concerns about the performance of the UK economy after fears of stagflation, where slow growth coupled with persistent price pressures, contributed to a sharp rise in borrowing costs at the start of the year.
It follows official data released on Wednesday showing an unexpected drop in inflation to 2.5 percent in December from 2.6 percent in the previous month.
The economy failed to grow in the three months to September, marking a sharp slowdown from 0.4 percent in the previous quarter. Growth was 0.7 percent between January and March last year.
In December, the Bank of England said it did not expect growth in the final three months of the year, down from its previous 0.3 percent expansion in November.
The BoE left interest rates unchanged at 4.75 percent last month after cutting borrowing costs twice in 2024. Markets are widely expecting that the bank will cut the policy rate quarterly in February.
Experts polled by the FT expect the UK economy to outperform France and Germany, but warned that Reeves' plans to increase employers' national insurance contributions could hurt the labor market. The Chancellor has announced an increase in the Budget for October but it will come into effect in April.
This is a growing story