UK economy grows more than expected in November
By Michele Maatouk
Date: Thursday 15 Jan 2026
(Sharecast News) - The UK economy grew more than expected in November 2025, according to data released on Thursday by the Office for National Statistics.
GDP grew 0.3% following a 0.1% contraction in October, and versus expectations for just 0.1% growth. September's figures were revised to show growth of 0.1%, up from an initial estimate of a fall of 0.1%.
The services sector grew 0.3% while production expanded by 1.1%, but construction fell 1.3% in November.
The data showed that production of motor vehicles, trailers and semi-trailers grew 25.5% in November following 9.6% growth in October and a 29.5% decline in September, when operations at JLR were hit by a cyberattack.
The ONS said the industry has now almost returned to August 2025 levels.
Liz McKeown, director of economic statistics at the ONS, said: "The economy grew slightly in the latest three months, led by growth in the services sector, which performed better in November following a weak October.
"This was partially offset by a fall in manufacturing, where three-monthly growth was still affected by the cyber incident that impacted car production earlier in the Autumn.
"However, data for the latest month show that this industry has now largely recovered.
"Construction contracted again, registering its largest three-monthly fall in nearly three years."
Jake Finney, senior economist at PwC, said: "The latest GDP figures show the UK returned to strong growth in November after October's contraction, a clear improvement despite ongoing Budget-related uncertainty. Even so, the broader picture remains subdued. This rebound is unlikely to be enough to lift growth materially, leaving the year to end with a whimper rather than a bang, though there are early signs the economy is moving in the right direction.
"November's expansion appears to have been supported by stronger consumer spending ahead of Christmas, likely supported by Black Friday discounts. UK households continue to sit on elevated levels of savings, with total cash balances exceeding £2tn for the first time. If confidence improves and consumers begin to run down those buffers, household spending could provide a meaningful boost to growth in 2026."
Russ Mould, investment director at AJ Bell, said: "Better than expected UK GDP growth in November is welcome news for the new year. While partially helped by Jaguar Land Rover getting back to work after a cyber-attack, the increase in services activity shows there is more to the GDP progression than just restarting car production.
"It's also positive to see GDP growth for a month where business and consumer decisions might have been put on ice pending the Budget.
"The GDP expansion is positive, yet UK economic activity is still pedestrian overall. There is still a reticence by many businesses to invest heavily, and that is evident by a fragile jobs market.
"Chancellor Rachel Reeves has long said that tough decisions in the near-term should pave the way for a stronger economy down the line. We're still in the waiting game for that strategy."
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