Official statistics showed that the British economy grew by 0.3% in November, exceeding analysts’ expectations, which indicated only 0.1%, despite the uncertainty that preceded the budget presented by Finance Minister Rachel Reeves. The Office for National Statistics explained that this improvement comes after a contraction of 0.1% in October.
This growth is considered a support for the Minister of Finance, who relies on the recovery of the economy to strengthen the Labor Party’s position in the coming stage, especially after the beginning of 2025 was affected by the cyber attack that targeted “Jaguar Land Rover” and caused a decline in industrial production. However, the company’s recovery was positively reflected in the November data, as car production witnessed an increase of 25.5%.
According to data from the Office for National Statistics, the services sector achieved growth of 0.3% in November, while industrial production recorded a jump of 1.1%. In contrast, the construction sector decreased by 1.3%, which again raised concerns about the stumbling of the urban boom that the government was counting on.
Yael Selfin, chief economist at “KPMG” in the United Kingdom, said that the data indicate that the economy “stabilized” during November, adding that economic activity has accelerated despite the atmosphere that preceded the budget. With companies’ concerns decreasing, Selfin expects the growth momentum to continue in the coming months, with early indications of improved consumer spending.
For their part, economists at the National Institute of Economic and Social Research “NIESR” stated that the current data indicates an expected growth of 1.4% for the entire year of 2025. Ben Caswell, chief economist at the Institute, considered that Reeves more than doubled the government spending margin in the budget in order to enhance confidence, pointing out that this step may have alleviated the speculation related to future tax policy and the uncertainty that accompanies it.
In a related context, borrowing costs in the United Kingdom fell to their lowest levels in more than a year on Wednesday, amid hopes for a further reduction in interest rates by the Bank of England. The Office for National Statistics indicated that gross domestic product rose by 0.1% during the three months ending in November, a period considered more indicative of the health of the economy, noting that the “Jaguar Land Rover” shutdown had a clear impact on this period.
