UK economy grew by 0.3% in November, beating forecasts
The UK economy grew 0.3% faster than expected in November, following a recovery in car production and a revival in the services sector.
The growth was driven by an increase in industrial production, helped by the return to production at Jaguar Land Rover facilities following a cyber attack on the automaker.
The November growth figure was above analysts’ expectations of a 0.1% increase.
The Office for National Statistics also said the economy “grew slightly” by 0.1% in the three months to the end of November.
Manufacturing output increased by 2.1% in November, thanks to a large 25.5% increase in motor vehicle production as JLR production continues to rise.
With the Budget of November 26, there was an increase in services arising from activities such as accounting and tax consultancy.
KPMG UK chief economist Yael Selfin said the figures showed economic activity was accelerating despite uncertainty over the Budget.
“Despite consumer sentiment being relatively moot so far and consumer services output falling in November, there are some tentative signs of a rebound in household spending,” he said.
“We expect the growth momentum to continue in the coming months, with the worst of the uncertainty behind businesses.”
Construction output fell 1.3% in November and the ONS said the sector also recorded its “biggest quarterly decline in nearly three years”.
Ruth Gregory, deputy chief economist at Capital Economics, said the decline in the construction sector was likely due to “unseasonably wet weather” and a recovery in December was likely.
But the increase in services output has done “little more than reversing the big declines of the last few months,” Gregory said.
“So we think the strength in November is more likely to be a recovery than a sign that the economy is fundamentally stronger than we thought,” he said.
A Treasury spokesman said the government was making the economy “benefit workers” by “reversing years of underinvestment” in infrastructure and reforming planning.
The spokesman said the government was working to reduce bills and inflation but acknowledged there was more to be done to tackle the cost of living.
