UK Economy Posts Modest November Growth as Services Strengthen and Manufacturing Rebounds

The UK economy expanded by 0.3% in November, supported by growth in the services sector and a recovery in vehicle manufacturing following earlier disruption at Jaguar Land Rover (JLR), according to new data from the Office for National Statistics (ONS). Construction activity, however, continued to decline, marking one of its weakest periods in nearly three years.

Economic output increased after a 0.1% contraction in October, exceeding forecasts that had anticipated only marginal growth. Services — the largest component of the UK economy — rose by 0.3%, while production output increased by 1.1% during the month. The rebound in manufacturing was partly driven by JLR’s return to normal operations after a cyberattack earlier in the autumn had temporarily halted production and contributed to a sharp fall in motor vehicle output.

Construction remained a notable drag on overall performance, contracting by 1.3% in November and continuing a downward trend that has persisted throughout the second half of the year. The ONS reported that the sector recorded its weakest three‑month performance since March 2023, reflecting ongoing pressures from higher borrowing costs and subdued demand in parts of the housing and commercial property markets.

Economists noted that the November figures offer a short-term improvement but cautioned that broader economic momentum remains fragile. Survey data and business sentiment indicators had pointed to weaker activity in the run-up to the Autumn Budget, though the latest output data suggests that some sectors proved more resilient than expected.

The growth matters for households, businesses, and policymakers as the UK continues to navigate a period of high living costs, elevated interest rates, and uncertainty surrounding investment decisions. Analysts expect that easing inflation and potential interest rate cuts later in 2026 could support a gradual improvement in economic conditions, though risks remain tied to labour market pressures and global demand trends.

The ONS will release updated GDP figures next month, providing further insight into whether November’s rebound signals a sustained shift or a temporary recovery following earlier disruptions.