Thu, 15 Jan 2026

Thu, 15 Jan 2026 UK economy grew by 0.3% in November, beating forecasts

The economy was boosted by a rebound in car production and from the services sector.
The UK economy grew by 0.3% in November, exceeding expectations of a 0.1% increase. This growth was driven by an increase in industrial output, particularly in the car manufacturing sector, which rebounded after a cyber-attack at Jaguar Land Rover's facilities. The services sector also saw a boost, with increased activity in accounting and tax consultancy services. Economists welcomed the news, but predicted that growth would remain moderate. Suren Thiru from the Institute of Chartered Accountants said that the strong November figure suggested most sectors had "shrugged off pre-Budget uncertainty." However, other experts were more cautious, with Ruth Gregory from Capital Economics saying the increase in services output was likely a rebound rather than a sign of fundamental strength. The economy's overall growth rate for the three months to November remained at 0.1% compared to the previous quarter. The construction sector experienced a decline of 1.3% in November, but economists expected this to be temporary due to unseasonable weather. Deutsche Bank's Sanjay Raja said that the improved economic data could make it less likely for the Bank of England to cut interest rates. Some experts predicted continued growth momentum over the coming months, citing tentative signs of increased household spending and business investment. Yael Selfin from KPMG UK expected positive growth in the first three months of 2026 driven by government spending and business investment.
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