The UK economy staged a surprise return to growth in November, expanding by 0.3 per cent, according to the latest official figures. The data provides a modest boost to the government, which has prioritised economic growth, and offers some relief for businesses, particularly in the dominant services industry.
Services Sector Leads the Way
The Office for National Statistics (ONS) reported that the growth was primarily driven by a strong performance in the services sector during November, which bounced back from a weak October. Consumer-facing services output increased by 0.5 per cent in the three months to November, compared with the previous quarter.
Within this sector, travel agents and tour operators saw the most significant expansion. Retail trade and sport or recreation services also experienced a welcome uptick in activity. This uplift helped offset continued challenges in other parts of the economy.
Manufacturing and Construction Challenges
While services flourished, manufacturing output fell over the latest three-month period. The ONS confirmed this was still being affected by the major cyber incident that disrupted car production earlier in the autumn, notably at Jaguar Land Rover plants.
However, there was a silver lining in the monthly data for November. The statistics show that the manufacturing industry, and car production in particular, has now largely recovered from the cyber attack, with construction restarting at affected sites.
In contrast, the construction sector contracted again, registering its largest three-monthly fall in nearly three years, acting as a drag on the broader economic picture.
Revised Figures and Broader Picture
The latest data release also included positive revisions to previous estimates. Figures for October were revised upwards, which changed the overall picture for the last quarter of 2025.
As a result, the economy now grew by 0.1 per cent in the three months leading up to November. This indicates the UK narrowly avoided a technical recession in that period.
Liz McKeown, Director of Economic Statistics at the ONS, explained the situation. "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," she said. "This was partially offset by a fall in manufacturing... However, data for the latest month show that this industry has now largely recovered."
The figures arrive amid ongoing economic uncertainty ahead of the upcoming Budget. While the November growth is a positive sign, analysts will be watching closely to see if this momentum can be sustained into the new year.
