Car manufacturing drives UK economy’s return to growth
Britain’s economy grew stronger than expected in November; This was supported by Jaguar Land Rover’s return to normal production following a cyber attack that hit the carmaker and its suppliers.
Gross domestic product rose 0.3 percent monthly, following an unrevised 0.1 percent decline in October, official data showed on Thursday.
Economists polled by Reuters had forecast GDP growth of 0.1 percent on a monthly basis.
Just under half of November’s growth came from a 1.1 percent increase in industrial production; this increase was driven by a 25 percent increase in car production following the reopening of JLR facilities; This was the largest monthly increase in auto production since July 2020.
Output in Britain’s leading services sector also rose more than expected in November, rising 0.3 percent compared to a 0.3 percent decline in October.
Previous surveys of the UK economy have shown some signs of stumbling ahead of finance minister Rachel Reeves’ annual budget announcement on November 26 as speculation about possible tax increases weighs on the economy.
The Bank of England expects the UK economy to show zero growth in the October-December period of 2025, but sees underlying growth at around 0.2 per cent on a quarterly basis.
The Office for National Statistics said the economy grew by 0.1 per cent in the three months to November.
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