UK economy up 0.3% in November as car production rebounds

Britain’s economy grew 0.3% in November, beating forecasts as a surge in car production following Jaguar Land Rover’s recovery from a cyberattack lifted output, while services also rebounded and eased fears that budget uncertainty would stall growth.

Hannah Xuchille Egot January 15, 2026

Looking ahead, the International Monetary Fund expects Britain’s economy to grow 1.3% in 2026. Image source: Alev Takil / Unsplash

Britain’s economy rebounded more strongly than expected in November, growing 0.3% month on month as car production surged following Jaguar Land Rover’s return to full output after a cyberattack, easing fears that budget uncertainty would derail activity.

The Office for National Statistics (ONS) said Thursday that the November expansion was the fastest since June and followed a 0.1% contraction in October.

Production surge

Almost half of November’s growth came from a 1.1% rise in industrial output, driven by a 25% jump in car production, the biggest monthly increase since July 2020, when COVID-19 restrictions were lifted. The rebound reflected the normalization of production at Jaguar Land Rover and its suppliers after a cyberattack earlier in the autumn disrupted operations.

Britain’s dominant services sector also surprised on the upside, expanding 0.3% in November after a 0.3% fall in October. Gains were led by professional and technical services, information and communication, and wholesale and retail trade. Construction remained a drag, with output falling 1.3% on the month, marking a second consecutive decline.

The pound briefly strengthened against the dollar after the data, while markets continued to price in around two quarter-point interest rate cuts by the Bank of England this year.

The figures suggested that uncertainty ahead of finance minister Rachel Reeves’ annual budget on November 26 weighed less heavily on output than some surveys had indicated. However, the ONS said many firms reported delaying decisions while awaiting the budget outcome, particularly in construction.

Over the three months to November, the economy grew by just 0.1%, though that was better than the 0.2% contraction forecast in the Reuters poll, helped by upward revisions to earlier data. On an annual basis, GDP in November was 1.4% higher than a year earlier.

Cautious outlook

Business groups cautioned that the rebound may not signal a sustained acceleration. Stuart Morrison of the British Chambers of Commerce said companies remained cautious about investment and hiring, limiting near-term growth. A recent survey showed business confidence fell to a three-year low at the end of 2025.

The Bank of England expects the economy to have flat-lined in the final quarter of 2025, though it estimates underlying growth of about 0.2% per quarter.

Deutsche Bank economist Sanjay Raja said the stronger data and fading budget uncertainty could allow growth to outperform forecasts in early 2026, Reuters reported.

Looking ahead, the International Monetary Fund expects Britain’s economy to grow 1.3% in 2026, matching last year’s pace. While that would rank among the fastest in the G7 after the United States and Canada, it remains well below the UK’s pre-financial-crisis trend.