The UK economy expanded by 0.3% in November, exceeding expectations of 0.1% growth, according to the Office for National Statistics. This follows a 0.1% contraction in October and a revised 0.1% growth in September, which was initially reported as a decline.
The rebound was driven largely by a recovery in car production after a cyber-attack on Jaguar Land Rover disrupted output earlier in the autumn. Motor vehicle manufacturing rose by 25.5% in November, boosting overall factory output.
The better-than-expected figures provide some relief for Chancellor Rachel Reeves, who faced criticism over the impact of pre-Budget uncertainty on the economy. However, the construction sector continued to struggle, with output falling more than 1% in the three months to November, its worst slump in over two years.
Separately, regulator Ofwat announced it is investigating South East Water after repeated outages since November left tens of thousands of households and businesses without drinking water in Kent and Sussex. The probe comes amid reports that the company's chief executive, David Hinton, is in line for a £400,000 long-term bonus if he remains until July 2030.
In other news, the FTSE 100 closed at a record high of 10,238.94 points, buoyed by the GDP data and falling gilt yields. Meanwhile, Donald Trump imposed a 25% tariff on certain AI chips, including Nvidia's H200 processor and AMD's MI325X, under a new national security order.
