Home Money LIVE BUSINESS: GDP grows 0.1%; Taylor Wimpey points to higher costs; CAB payments cut staff

LIVE BUSINESS: GDP grows 0.1%; Taylor Wimpey points to higher costs; CAB payments cut staff

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LIVE BUSINESS: GDP grows 0.1%; Taylor Wimpey points to higher costs; CAB payments cut staff

The British economy returned to growth in November, but output was weaker than expected, new data from the Office for National Statistics shows.

GDP rose 0.1 percent in November, missing forecasts of 0.2 percent but marking an improvement after two consecutive months of contraction.

The data, following Wednesday’s weaker-than-expected inflation data, may strengthen the case for the Bank of England to resume cutting interest rates.

The FTSE 100 will open at 8am Companies with trading reports and updates today include Taylor Wimpey, CAB Payments, Young’s, Whitbread, Deliveroo and Dunelm. Read the Business Live blog from Thursday 16 January below.

> If you are using our app or a third-party site, click here to read Business Live

Cut rates six times in 2025 to avoid recession, says Bank of England official after inflation plunge

A senior Bank of England official said last night that interest rates may need to be cut up to six times this year to avoid recession fears as Labor’s employment taxes hit.

Alan Taylor, a member of the Bank’s Monetary Policy Committee that sets rates, said that “with the economy weakening, it is time to bring interest rates back to normal to sustain a soft landing.”

Concerns about inflation eased yesterday on both sides of the Atlantic, boosting markets and providing respite for beleaguered Chancellor Rachel Reeves.

CAB Payments cuts 20% of staff

London-listed money transfer group CAB Payments plans to cut 20 per cent of its staff as it aims to cut costs and invest in artificial intelligence and automation.

The group cited weak trade and higher national insurance contributions by employers after the Autumn Budget.

“We can do more with less,” CEO Neeraj Kapur said in a statement Thursday.

The company said its performance since October has been affected by a stronger dollar and political uncertainty that has affected demand for cross-border payments.

Taylor Wimpey points to higher construction costs

Taylor Wimpey has flagged increased cost pressure as the British property sector navigates affordability and broader economic concerns.

British housebuilders, who have faced lackluster demand over the past year, potentially face pressure from a slower-than-expected reduction in rate cuts.

“While market conditions are uncertain and we continue to monitor the impact of mortgage costs on affordability, we enter 2025 with a strong order book and ground position,” CEO Jennie Daly said in a statement.

GDP grows 0.1% in November

The British economy returned to growth in November, but output was weaker than expected, new data from the Office for National Statistics shows.

GDP rose 0.1 percent in November, missing forecasts of 0.2 percent but marking an improvement after two consecutive months of contraction.

The data, following Wednesday’s weaker-than-expected inflation data, may strengthen the case for the Bank of England to resume cutting interest rates.

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