The UK economy has grown by a faster-than-expected 0.3% in November, far exceeding analysts’ predictions for the period.
This came largely through an increase in industrial output, according to the Office for National Statistics (ONS), who explained that the growth was helped by Jaguar Land Rover’s return to production following a cyber-attack that halted operations in August 2025, leading to a loss of nearly £500 million for the company.
The November figures have been welcomed, with Suren Thiru – the Economic Director at the Institute of Chartered Accountants in England and Wales – noting that they were “unexpectedly upbeat” and that most sectors had “seemingly shrugged off pre-budget uncertainty.” Although economists warn that growth is expected to remain moderate.
What This Means for Your Business
The ONS data supports the view that consumer spending has picked up following guidance in mid-November that the chancellor, Rachel Reeves, had backed away from imposing income tax hikes.
The services sector grew by 0.3% in November, while production grew by 1.1%, the ONS said. However, construction fell by 1.3%, contributing to “its largest three-monthly fall in nearly three years”, said Liz McKeown, director of economic statistics at the ONS.
Nevertheless, according to economists at the National Institute of Economic and Social Research (NIESR), the UK economy appears to have grown by 1.4% for 2025, a stronger figure than the previous year. This represents positive change for business owners, the majority of whom have been operating in uncertain conditions in the run-up to the Autumn Budget announcements.
“The news that the GDP has grown is welcome, but it’s clear the growth is being driven by a few specific sectors rather than the whole economy firing on all cylinders.” Says Chris Barlow, Tax Manager at EKWilliams, part of the ETL network. “For businesses, this kind of patchy recovery means cash-flow planning and tax efficiency remain just as important as ever.”
Further Figures Still to Come
A Treasury spokesperson said the government was making the economy “work for working people” by “reversing years of underinvestment” in infrastructure as well as putting through planning reform.
The spokesperson said the government was working to get bills and inflation down, but acknowledged there was still more to do to tackle the cost of living.
Within the next week, further evidence on the state of the economy will be revealed as inflation and unemployment data is due to be released. Reeves is keen to see more rate cuts as part of the government’s drive to cut the cost of living.
