UK Economic Growth Rebounds in November

The UK economy expanded by 0.3% month-on-month in November 2025, rebounding from a 0.1% contraction in October and outperforming market expectations of 0.1% growth. The services sector led the recovery, growing by 0.3% and reversing a 0.3% decline in the previous month. Professional, scientific and technical activities made a strong contribution, rising by 1.7%, followed by information and communication (+1.5%) due to gains in computer programming, consultancy and related activities, and wholesale and retail trade (+0.6%). Production output increased by 1.1%, following a 1.3% rise in October, reflecting a 2.1% expansion in manufacturing. This was largely driven by a 10.7% surge in transport equipment manufacturing, with output of motor vehicles, trailers and semi-trailers jumping 25.5%, as car production continued to normalize after August’s cyber incident. In contrast, construction activity declined by 1.3%, slightly deeper than the 1.2% fall recorded in October.

The British economy unexpectedly contracted 0.1% mom in October 2025, following a similar decline in September and falling short of expectations for a 0.1% expansion. This marks the fourth consecutive month without economic growth. Services sector declined 0.3%, after a 0.2% gain in September, with the largest negative contributions coming from wholesale and retail trade and repair of motor vehicles and motorcycles (-4.3%) and computer programming, consultancy and related activities (-3.6%). Construction was also down by 0.6% (vs a 0.2% rise in September), with the main negative contribution coming from private new housing (-2.4%). On the other hand, the production sector increased 1.1%, rebounding from a 2% plunge, with growth seen in manufacturing (0.5%), mostly manufacture of motor vehicles and trailers (9.5%); mining (4.3%); electricity, gas, steam and air conditioning (2.1%); and water; sewerage, waste (1.5%). Meanwhile, the GDP also contracted 0.1% in the three months to October.

The UK’s monthly real GDP fell by 0.1% in September 2025, compared with August’s and market expectations of zero growth. Production output declined by 2%, reversing a 0.3% gain in the previous month and marking the largest drop since January 2021. This was largely due to lower manufacturing output (-1.7% vs 0.6%), led by a 28.6% plunge in the manufacture of motor vehicles, trailers, and semi-trailers as a cyberattack forced Jaguar Land Rover to suspend production. On the other hand, the services sector rose by 0.2%, rebounding from a 0.1% drop in August, supported by strong growth in wholesale and retail trade; repair of motor vehicles and motorcycles (+1.4%), information and communication (+0.8%), and education (+0.8%). Construction output also increased by 0.2%, after falling 0.5%, driven entirely by a 0.7% rise in new work.