The UK economy grew by 0.3% in November, exceeding forecasts of 0.1%, according to new data from the Office for National Statistics. The expansion follows a 0.1% contraction in October and a revised 0.1% growth in September, which was previously estimated as a decline.
The recovery was partly driven by a rebound in car production after Jaguar Land Rover resumed operations following a cyber attack. Motor vehicle manufacturing rose 25.5% in November. The better-than-expected figures provide a boost to Chancellor Rachel Reeves, who faces pressure over the impact of pre-Budget uncertainty on economic activity.
However, the construction sector remains in a slump, with output falling more than 1% in the three months to November, its worst performance in over two years. Meanwhile, the FTSE 100 closed at a record high of 10,238.94 points, supported by the GDP data and falling gilt yields.
In other news, regulator Ofwat has launched an investigation into South East Water after repeated outages left tens of thousands without drinking water in Kent and Sussex since November. Separately, the High Court heard that a company linked to financier Lex Greensill lent £250 million more than it should have to businesses owned by steel magnate Sanjeev Gupta during the pandemic.
