KPMG: The UK's economic growth momentum may rebound, as the country has previously moved past budgetary worries.

Yael Selfin, Chief Economist at KPMG UK, stated in a report that despite uncertainty surrounding the government budget, economic activity in the UK accelerated in November. "With the most severe uncertainty facing businesses now behind us, we expect the momentum of growth to continue in the coming months." She noted that while consumer sentiment was relatively weak in November and output in consumer-facing services declined, there are preliminary signs that household spending is picking up. Inflation is expected to decrease, which could support an increase in non-essential spending. KPMG predicts that GDP will grow by 0.2% in the fourth quarter, leading to a full-year growth rate of around 1.4% in 2025. Selfin stated, "The outlook for the first quarter of this year is positive, with growth expected to be mainly driven by business investment and government expenditure."