15 Jan 2026

UK Economy Picks Up Pace After Autumn Setbacks

Written by  Shani Brooks

The UK economy recorded stronger growth than forecast in November, expanding by 0.3% after a weak October, according to new figures from the Office for National Statistics. The increase exceeded expectations of a modest rise and marked a rebound following a 0.1% contraction the previous month, offering signs of renewed momentum towards the end of the year.

A key factor behind the improvement was a recovery in manufacturing, particularly car production. Output at Jaguar Land Rover rose sharply as factories returned to normal operations after a cyber-attack earlier in the autumn had forced a complete shutdown. Motor vehicle manufacturing jumped by more than 25% in the month, helping lift overall industrial production.

The services sector also contributed to the growth, with activity picking up ahead of the November Budget. Businesses involved in professional services, including accountancy and tax advice, saw increased demand as firms prepared for fiscal changes. Economists said the figures suggest many companies pushed ahead with plans despite uncertainty in the run-up to the Budget.

Looking at the broader picture, the economy grew by 0.1% over the three months to November compared with the previous quarter. While construction activity fell back during the month, analysts believe this was partly weather-related and may reverse. Economists remain cautious, noting that November’s strength may reflect a short-term bounce rather than a sustained acceleration. However, expectations are for modest growth to continue into early 2026, supported by business investment and public spending.

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