The UK economy recorded a stronger-than-anticipated expansion in November, supported by a rebound in manufacturing activity and improved performance across key sectors.
Official figures show that gross domestic product increased by 0.3% during the month, reversing a 0.1% contraction recorded in October. This outcome exceeded market expectations, with economists previously forecasting growth of 0.1%.
A significant contribution came from the industrial sector, where output rose by 1.1%. This was largely driven by a sharp recovery in car manufacturing following the resumption of normal operations at Jaguar Land Rover. Production at the carmaker and its suppliers had been disrupted earlier by a cyberattack, and the subsequent reopening of plants led to a substantial rise in vehicle output. The increase marked the strongest monthly gain in car production since mid-2020.
The services sector, which represents the largest share of the UK economy, also performed better than anticipated. Output increased by 0.3% in November, recovering from a decline of the same magnitude in October.
Earlier business surveys had pointed to signs of economic hesitation in the run-up to the Chancellor’s annual Budget statement in late November, as uncertainty around potential tax changes weighed on sentiment. Despite the monthly improvement, the broader outlook remains subdued. The Bank of England expects overall economic activity to have been flat across the final quarter of 2025, while estimating that underlying growth is running at approximately 0.2% per quarter.
Over the three-month period to November, the Office for National Statistics reported that the UK economy expanded by 0.1%, indicating modest momentum as the year drew to a close.
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