Financial News: UK Economy Returns To Growth

UK Economy Returns To Growth

01/15/2026 - 08:14:00 (RTTNews)

(RTTNews) - The UK economy recovered at a stronger-than-expected pace in November, driven by a surge in car manufacturing and services output, official data showed on Thursday.

Gross domestic product logged a monthly growth of 0.3 percent, reversing the 0.1 percent drop seen in October, the Office for National Statistics said. GDP was expected to grow marginally by 0.1 percent.

"Overall the better November data suggests we should get 0.1-0.2% growth for the fourth quarter overall, leaving annual growth for 2025 at 1.4%," ING economist James Smith said. However, growth is likely to be slower in 2026 than in 2025, he noted. Confederation of British Industry Lead Economist Ben Jones said, "While growth is likely to remain moderate, the economy should still expand at a steady pace through 2026 as inflation eases and real incomes rise modestly."

Better-than-expected GDP data suggests the impact of pre-Budget jitters among businesses may have been less than predicted, British Chambers of Commerce Research Manager Stuart Morrison said.

ONS data showed that economic growth was underpinned by the 0.3 percent rise in services output and the 1.1 percent gain in industrial output. However, construction registered a 1.3 percent fall.

Manufacturing output moved up 2.1 percent in November as there was a surge of 25.5 percent in the manufacture of motor vehicles, trailers and semi-trailers.

On a yearly basis, real GDP advanced 1.4 percent in November, which was stronger than the expected increase of 1.1 percent.

In the three months to November, GDP grew only 0.1 percent from the previous three months. This followed no growth in the three months to October.

GDP expanded 1.3 percent in the three months to November from the same period last year.

Another data showed that the visible trade deficit narrowed to GBP 23.7 billion from GBP 24.2 billion in the previous month. However, the shortfall was bigger than forecast of GBP 20.3 billion. The total trade deficit fell to GBP 6.1 billion from GBP 6.5 billion a month ago.

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