The UK economy staged a comeback in November, with official figures showing the economy grew by a greater-than-expected 0.3%.
It follows an unrevised fall of 0.1% in October.
Growth was driven by a 1.1% rise in production, boosted by the return to output at Jaguar Land Rover’s facilities following a cyber-attack in the Autumn which impacted vehicle production.
Services also grew by 0.3% in November, however construction fell by 1.3% during the month, the figures from the Office for National Statistics show.
November’s growth beat analysts’ expectations of a 0.1% increase.
However, growth in the three months to November – often used to provide a better underlying picture of growth – was 0.1% compared to no growth in the three months to October and 0.1% in the three months to September.
Over the three-month period, services output increased by 0.2% while production output fell by 0.1%, largely because of a fall in the manufacture of motor vehicles, trailers and semi-trailers in this period. Construction output also dipped by 1.1%, continuing a pattern of slowing growth in the three-monthly measure since May 2025, the Office for National Statistics said.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said the growth in November occurred despite the uncertainty surrounding the Autumn Budget.
She said: “The uplift in activity comes despite the uncertainty caused by the late Autumn Budget, with the painful and protracted build-up to the fiscal event on November 26 mired by rampant speculation over potential tax changes.
“The positive GDP data will deliver some relief for Chancellor Rachel Reeves at the start of the year, particularly as early indicators for December point to softer jobs data, subdued card spending and fragile business sentiment – though some of this can be attributed to the typical seasonal slowdown over the festive period.”
Luke Bartholomew, deputy chief economist at Aberdeen, said: “After months of very sluggish activity, the November GDP report suggests there is still some life left in the UK economy. Of course, the monthly reports are very volatile, and the three month measure is still very weak at just 0.1% growth. But the final quarter of last year now looks like it ended in expansion.”
Looking ahead, Bartholomew said it remains unclear where the drivers of “sustainable pick-up” in growth in 2026 will come from.
“We continue to expect the Bank Rate to fall to 3% this year as long as inflation plays ball,” he added.
Rob Morgan, chief investment analyst at Charles Stanley, said: “Britain’s economy looks set to complete the second half of 2025 in positive territory. For 2026, expect more of the same: a mildly positive first half, then renewed weakness later. Deferred spending and investment may provide an early lift, but without gains in productivity or labour participation – and with the tax burden still weighing on sentiment – the economy is likely to stay stuck in low gear.
“The silver lining for households is easing inflation. As a result, the Bank of England is still expected to deliver at least one more rate cut this year. Combined with earlier reductions, this should ease the burden on borrowers and help bolster consumer confidence and the housing market.
“Overall, though, it’s hard to see anything other than a continuation of the weak, underwhelming picture as the year unfolds.”
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