UK economy grew by 0.3% in November, beating forecasts

The UK economy grew by 0.3% in November, surpassing analysts’ expectations of a 0.1% increase and marking a recovery from October’s 0.1% contraction. The Office for National Statistics (ONS) attributed the growth to a surge in industrial output, notably a 25.5% rise in motor vehicle production as Jaguar Land Rover (JLR) resumed operations following a cyber-attack that halted production in September. The services sector also saw a boost, particularly in accounting and tax consultancy, as businesses prepared for the Budget on 26 November.

Economists described the November figures as “unexpectedly upbeat,” suggesting most sectors had overcome pre-Budget uncertainty. Suren Thiru of the Institute of Chartered Accountants in England and Wales noted that the data pointed to modest growth in the final quarter of 2025, with easing uncertainty likely supporting activity in December. However, the ‘super flu’ disrupted sectors such as education, and construction output fell by 1.3% due to unseasonably wet weather.

Despite the positive headline figure, experts warned that the rebound may not signal a fundamental strengthening of the economy. Ruth Gregory of Capital Economics said the increase in services output largely reversed previous declines, while Sanjay Raja of Deutsche Bank suggested the data could delay a February interest rate cut by the Bank of England. The Treasury highlighted ongoing efforts to reduce inflation and support growth, but the opposition criticised the government’s economic record, calling growth “still flatlining.”

Looking ahead, KPMG’s Yael Selfin expects growth momentum to continue, driven by business investment and government spending, with tentative signs of increased household spending. However, most analysts agree that while November’s performance is encouraging, the UK economy faces ongoing challenges and growth is likely to remain subdued.