<\/p>\n
The UK economy grew by a faster-than-expected 0.3% in November after car production rebounded and the services sector got a boost.<\/p>\n
Growth was driven by an increase in industrial output, the Office for National Statistics (ONS) said, helped by the return to production at Jaguar Land Rover’s facilities following the cyber-attack at the carmaker.<\/p>\n
With the Budget on 26 November, there was also an increase in services driven by activities such as accounting and tax consultancy.<\/p>\n
November’s growth figure was stronger than analysts’ expectations of a 0.1% increase.<\/p>\n<\/div>\n
Businesses across the construction, industrial production and services sector told the ONS in November they were waiting to see the outcome of the autumn Budget before making decisions.<\/p>\n
The monthly GDP figures are more volatile than the rolling three-month data, which is considered to give a better underlying picture of growth.<\/p>\n
In the three months to November the economy grew by 0.1% compared with the previous three months, the ONS said.<\/p>\n<\/div>\n
Yael?Selfin, chief economist at KPMG UK, said the figures showed economic activity had accelerated despite uncertainty in the lead up to the Budget.<\/p>\n
“Despite the relatively mooted consumer sentiment so far and consumer-facing services output declining in November, there are some tentative signs of a pick-up in household spending,” she said.<\/p>\n
“With the worst of the uncertainty behind businesses, we expect growth momentum to continue over the coming months.”<\/p>\n
Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said the “unexpectedly upbeat” November figures suggested that most sectors had “seemingly shrugged off pre-Budget uncertainty”.<\/p>\n
“November’s uptick means it’s inevitable that the UK economy grew modestly across the final quarter of 2025 with easing uncertainty post-Budget likely to have supported growth in December, despite the ‘super flu’ disrupting activity in sectors like education,” he said<\/p>\n
Construction output fell by 1.3% in November, and the ONS said the sector also registered “its largest three-monthly fall in nearly three years”.<\/p>\n
Ruth Gregory, deputy chief economist at Capital Economics, said the fall in construction was probably due to “unseasonably wet weather” and was likely to rebound in December.<\/p>\n
However, Gregory said the increase in services output did “little more than reverse the big declines in the past few months”.<\/p>\n
“So we think November’s strength is more likely to be a rebound rather than a sign that the economy is fundamentally stronger than we thought,” she said.<\/p>\n
Deutsche Bank’s chief UK economist Sanjay Raja said the economic data should “raise the bar” for a February interest rate cut from the Bank of England.<\/p>\n
“With the economy now on a firmer footing than expected the impetus to accelerate rate cuts is likely lower,” he said.<\/p>\n
Part of the rebound came from the continued pick up in Jaguar Land Rover (JLR) production, which drove the 25.5% increase in motor vehicle output in November.<\/p>\n
JLR was forced to halt production at its plants across the UK for the whole of September, following a cyber-attack. Production began to resume in a staged manner from October.<\/p>\n<\/div>\n
A Treasury spokesperson said the government was making the economy “work for working people” by “reversing years of underinvestment” in infrastructure as well as putting through planning reform.<\/p>\n
The spokesperson said the government was working to get bills and inflation down, but acknowledged there was still more to do to tackle the cost of living.<\/p>\n
Shadow chancellor Mel Stride said the figures showed economic growth was “still flatlining”.<\/p>\n
“The chancellor promised growth as her number one mission, but a failure to grip the benefits bills – and instead putting up taxes – is weighing heavily on business and the economy,” he said.<\/p>\n<\/div>\n
#economy #grew #November #beating #forecasts<\/p>\n","protected":false},"excerpt":{"rendered":"
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