The UK economy has shown surprising resilience, achieving a 0.3% growth in November. This figure exceeded many forecasts and reflects a complex economic landscape.
Expert Insights on Economic Growth
Yael Selfin, chief economist at KPMG UK, emphasized that this growth indicates an acceleration in economic activity. Despite a decline in consumer-facing services and muted consumer sentiment, there are signs of increased household spending. Selfin noted that the worst uncertainties are likely behind businesses, which paves the way for continued growth momentum in the upcoming months.
Suren Thiru, director of economics at the Institute of Chartered Accountants in England and Wales, also highlighted the unexpected nature of the November figures. He remarked that most economic sectors have managed to shake off uncertainties leading up to the Budget, contributing to modest growth during the final quarter of 2025. Thiru added that easing uncertainties post-Budget could bolster growth in December, even amidst disruptions caused by illness in sectors like education.
Sector Performance
- Construction: Output fell by 1.3% in November.
- Motor Vehicles: A notable 25.5% increase in output was driven by Jaguar Land Rover (JLR).
According to the Office for National Statistics (ONS), the construction sector faced its largest three-monthly decline in nearly three years. Ruth Gregory, deputy chief economist at Capital Economics, suggested that this drop could be attributed to unseasonably wet weather, forecasting a rebound in December. However, she cautioned that the increase in service output merely offset previous declines, implying that November’s growth might be temporary rather than indicative of a stronger economy.
Jaguar Land Rover’s Impact
Part of the economic recovery can be linked to the continued increase in production at Jaguar Land Rover. The automotive giant halted production across its UK plants for the entirety of September due to a cyber-attack, but began a phased recovery in October. This recovery has played a significant role in driving up motor vehicle output and contributing to the positive economic figures for November.
Summary of November’s Economic Indicators
| Indicator | Change |
|---|---|
| Overall Growth | 0.3% |
| Construction Output | -1.3% |
| Motor Vehicle Output | +25.5% |
The November growth figures suggest a mixed but hopeful outlook for the UK economy as it navigates through post-Budget adjustments and sector-specific challenges.
