UK economy returns to growth as car manufacturing rebounds

LONDON: The UK economy returned to growth in November after a rebound in car manufacturing, driven by Jaguar Land Rover restarting production following a cyberattack, according to official figures.
The Office for National Statistics said gross domestic product rose 0.3% in November, following a revised 0.1% decline in October. The increase was stronger than economists’ expectations for a 0.2% rise.
Data revisions also showed the economy grew 0.1% in September, reversing an earlier estimate of a contraction, partly due to updated information from the pharmaceutical sector.
November’s growth was supported by a 25.5% surge in motor vehicle manufacturing, as the sector recovered from a sharp fall in September when JLR halted operations across production and sales sites after a major cyberattack. Production returned to more normal levels in November.
ONS director of economic statistics Liz McKeown said the motor manufacturing industry had “largely recovered,” though she noted that construction contracted again, recording its steepest three-month fall in nearly three years.
Construction output fell 1.3% in November, continuing a recent downward trend. By contrast, the production sector grew 1.1%, supported by motor manufacturing and a 3.8% increase in pharmaceutical output.
The services sector expanded by 0.3%, rebounding from a 0.3% decline in October, partly reflecting a 1.7% rise in professional and scientific services.
The stronger-than-expected data comes despite widespread business caution ahead of the autumn budget and provides a boost to Chancellor Rachel Reeves after a period of weak growth.
Ben Jones, lead economist at the Confederation of British Industry, said the figures suggest the economy was more resilient late last year than earlier data implied, though investment is likely to remain subdued due to soft demand, high costs and supply-side constraints.
Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said the return to growth was unlikely to mark a sustained revival, citing weaker consumer spending and rising unemployment pressures heading into 2026. — dpa