UK economy grows more than expected in November

(Sharecast News) - The UK economy grew more than expected in November 2025, according to data released on Thursday by the Office for National Statistics. GDP grew 0.3% following a 0.1% contraction in October, and versus expectations for just 0.1% growth. September's figures were revised to show growth of 0.1%, up from an initial estimate of a fall of 0.1%.

The services sector grew 0.3% while production expanded by 1.1%, but construction fell 1.3% in November.

Liz McKeown, director of economic statistics at the ONS, said: "The economy grew slightly in the latest three months, led by growth in the services sector, which performed better in November following a weak October.

"This was partially offset by a fall in manufacturing, where three-monthly growth was still affected by the cyber incident that impacted car production earlier in the Autumn.

"However, data for the latest month show that this industry has now largely recovered.

"Construction contracted again, registering its largest three-monthly fall in nearly three years."

Jake Finney, senior economist at PwC, said: "The latest GDP figures show the UK returned to strong growth in November after October's contraction, a clear improvement despite ongoing Budget-related uncertainty. Even so, the broader picture remains subdued. This rebound is unlikely to be enough to lift growth materially, leaving the year to end with a whimper rather than a bang, though there are early signs the economy is moving in the right direction.

"November's expansion appears to have been supported by stronger consumer spending ahead of Christmas, likely supported by Black Friday discounts. UK households continue to sit on elevated levels of savings, with total cash balances exceeding £2tn for the first time. If confidence improves and consumers begin to run down those buffers, household spending could provide a meaningful boost to growth in 2026."