Surprise growth for UK economy despite budget concerns

Rachel Reeves 1

The UK economy grew by 0.3% in November, despite the uncertainty over Rachel Reeves’s budget statement during that period.

The latest data from the Office for National Statistics (ONS) shows that real GDP is estimated to have grown by 0.3% in the month to November 2025, following a fall of 0.1% the month before and a 0.1% increase in September.

The ONS noted that, as in October 2025, its monthly business surveys showed many businesses and their customers were awaiting the outcome of the budget.

Growth was led in November by the services and production sectors, which increased by 0.3% and 1.1%, respectively.

The construction sector shrank by 1.3% during the same period.

Services are a steady driver of UK economic growth, recording an increase in economic output in every three-month period since January 2024.

Compared to November 2024, the UK’s real GDP is estimated to have grown by 1.4% over the past year.

A major incident that hindered UK economic growth in 2025 was the cyber-attack on Jaguar Land Rover, which greatly affected its ability to produce vehicles.

The company’s recovery since this cyber-attack contributed greatly to economic growth in November 2025, as it saw a 25.5% improvement in motor vehicle manufacturing that month.

The construction sector’s output saw a significant decline in the three months to November 2025 of 1.1%, which is the biggest decline in output since March 2023.

The largest negative contributor to the growth of the UK construction sector was public new housing, which fell by 10.8%.

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