The UK economy demonstrated a stronger performance than anticipated in November. It expanded by 0.3%, according to figures published on Thursday by the Office for National Statistics (ONS). This outturn comfortably exceeded the 0.1% growth predicted by economists polled by Reuters, offering a welcome boost after a period of subdued activity.
The services sector, which rose by 0.3%, alongside a sharp 1.1% increase in production output, led the growth. Construction continued to struggle, however, with activity falling by 1.3% over the month, weighing on overall momentum. Despite the upbeat data, the pound reaction was modest, hovering near $1.3433 against the US dollar.
November’s rebound followed a surprise 0.1% decline in October, when economic activity was disrupted by a cyber incident at Jaguar Land Rover and dampened by uncertainty among households and businesses ahead of the Autumn Budget.
Jane Foley, Rabobank’s head of FX strategy, welcomed the figures, calling them a “big relief” and highlighting stronger manufacturing figures. She noted that the improvement was likely to have supported retail spending and consumer demand, helping to lift the wider economy.
Looking ahead, analysts anticipate stronger growth into 2026 as the Bank of England continues to ease monetary policy. According to Sanjay Raja, chief UK economist at Deutsche Bank, GDP is likely to pick up notably in Q1. However, weakness in the labor market still poses risks.
