The UK economy is set to have returned to growth in November as car production recovered following the Jaguar Land Rover cyber attack, according to economists.<\/p>\n
Experts have pointed to stronger growth for the month despite caution in the run-up to the autumn budget at the end of the month.<\/p>\n
Monthly gross domestic product (GDP) is expected to have risen by 0.2 per cent in November when the Office for National Statistics unveils its latest figures on Thursday, according to economists at Pantheon Macroeconomics and Investec.<\/p>\n
It would represent a timely boost for the Labour government after declines of 0.1 per cent in both September and October, and mark the first increase since June.<\/p>\n
Economic activity across the previous two months was hit by weaker production, particularly in the car manufacturing sector after UK\u2019s largest car maker JLR stopped production during September due to a major cyber attack.<\/p>\n
The ONS also highlighted that some business spending was subdued ahead of the budget, which took place on November 26th.<\/p>\n
November\u2019s data is, however, expected to show some uplift in consumer spending ahead of Christmas despite concerns over the budget.<\/p>\n
Rob Wood and Elliott Jordan Doak, economists at Pantheon Macroeconomics, said they expect hospitality spending could help drive growth in the services sector.<\/p>\n
They said: \u201cAll told, we think the economy continued to chug along in November, despite months of pre-budget uncertainty.<\/p>\n
\u201cServices activity likely rose at a solid clip in November, driven by healthy growth in consumer-facing services.\u201d<\/p>\n
Hospitality spending data from CGA and RSM indicated 3.1 per cent growth in November, up slightly from 3 per cent in the previous month, amid resilient spending in parts of the sector such as pubs and a slight lift from inflation.<\/p>\n
Nevertheless, monthly retail data from the ONS showed that retail sales volumes dipped by 0.1 per cent in November.<\/p>\n
The fresh ONS data will shed more light on how confident businesses and consumers were with their spending and investment during the month, amid concerns over potential budget tax changes.<\/p>\n
Thursday\u2019s data is likely to see the biggest improvement in manufacturing.<\/p>\n
Investec\u2019s Philip Shaw predicted a manufacturing \u201cbounce back\u201d during the month as car production moved back towards more normal levels.<\/p>\n
Last month, the Society of Motor Manufacturers and Traders reported that production jumped 22 per cent month-on-month in November, with vehicle manufacturing up 12 per cent.<\/p>\n
Experts at Pantheon said this improvement is also likely to help support growth over the final quarter of 2025, but said this is still likely to be 0.1 per cent growth for the period. \u2013 PA<\/p>\n","protected":false},"excerpt":{"rendered":"The UK economy is set to have returned to growth in November as car production recovered following the…\n","protected":false},"author":2,"featured_media":240275,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,17256,60,38422],"class_list":["post-240274","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-investec","tag-ireland","tag-office-for-national-statistics"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/240274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=240274"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/240274\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/240275"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=240274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=240274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=240274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}