The UK economy grew by a stronger-than-expected 0.3% in November despite uncertainty around Rachel Reeves\u2019s budget, official figures show.<\/p>\n
Figures from the Office for National Statistics (ONS) on Thursday showed the improvement, up from a 0.1% fall in October.<\/p>\n
Forecasters had expected a more modest 0.1% expansion. The better-than-expected data will be good news for the chancellor, who hopes an economic turnaround will help Labour\u2019s fortunes.<\/p>\n
Economic output earlier in 2025 was hit by the cyber-attack on the carmaker Jaguar Land Rover<\/a>, which depressed vehicle production. The company\u2019s recovery appears to have contributed to November\u2019s growth, with a 25.5% improvement in motor vehicle manufacture during the month.<\/p>\n The services sector grew by 0.3% in November, while production grew by 1.1%, the ONS said. However, construction fell by 1.3%, underlining fears that the government\u2019s hoped-for building boom is failing to materialise.<\/p>\n Yael Selfin, the chief economist at KPMG UK, said the data suggested the economy had \u201cfound its footing\u201d in November.<\/p>\n \u201cDespite the uncertainty ahead of the budget, economic activity accelerated in November. With the worst of the uncertainty behind businesses, we expect growth momentum to continue over the coming months,\u201d she said, adding that there were \u201ctentative signs of a pick-up in household spending\u201d.<\/p>\n Economists at the National Institute of Economic and Social Research (NIESR) said the data pointed to growth of 1.4% for 2025 as a whole \u2013 stronger than the previous year.<\/p>\n Ben Caswell, a senior economist at NIESR, said: \u201cAgainst this backdrop, the chancellor more than doubled her fiscal headroom at the budget in an effort to bolster economic confidence. While it is too early to see the full effect of this, the move appears to have eased speculation over future tax policy and the uncertainty that came with it.\u201d<\/p>\n The UK\u2019s borrowing costs dropped to their lowest level in more than a year on Wednesday<\/a> amid hopes of more interest rate cuts from the Bank of England.<\/p>\n The ONS said that over the three months to November \u2013 a period it said gave a better snapshot of the economy\u2019s health \u2013 gross domestic product grew by 0.1%, dampened by the JLR shutdown.<\/p>\n Further evidence on the state of the economy will come in the next week, with inflation and unemployment data due to be released. Reeves is keen to see more rate cuts as part of the government\u2019s drive to cut the cost of living.<\/p>\n