The UK economy grew at a faster-than-expected pace in November, easing concerns about a potential recession in late 2025. Data released on Thursday by the Office for National Statistics showed Gross Domestic Product (GDP) grew by 0.3% in November, reversing a 0.1% decline from the previous month. This figure surpassed the 0.1% growth economists had previously forecast.
The statistics office indicated the data benefited from a recovery in Jaguar Land Rover's car production, after the automaker was forced to halt operations due to a cyberattack it suffered last autumn. Liz McKeown, Director of Economic Statistics at the ONS, stated that the latest figures show the automotive sector has largely recovered from the shock to production. This marks the second month of expansion for the UK economy in the second half of the year. The services sector grew by 0.3% during the month, while manufacturing output surged by 2.1%. Following the data release, the Pound Sterling briefly erased its earlier losses against the US Dollar. Traders scaled back their bets on the magnitude of interest rate cuts by the Bank of England this year, although two 25-basis-point reductions by year-end are still considered highly likely. This data may alleviate market worries about a deteriorating economic situation in recent months, which had been fueled by signs of rising unemployment and cautious consumer spending. Economists anticipate that economic activity will pick up in early 2026 as various drags, including the Jaguar Land Rover cyberattack, budgetary uncertainty, and strikes, begin to fade.
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