UK GDP Rebounds as Services and Manufacturing Lead

The UK economy expanded by 0.3% in November 2025, a stronger recovery following October’s 0.1% dip. This performance outpaced market forecasts of a minor 0.1% uptick, signaling that the economy regained its footing as the year drew to a close.

Services Lead the Charge

The dominant services sector provided the primary engine for growth, rising 0.3% to erase the previous month’s losses. Professional, scientific, and technical activities stood out with a sharp 1.7% jump, reflecting strong demand for high-end business consultancy and technical services. Additionally, the information and communication sector climbed 1.5%, supported by a flurry of activity in computer programming. Consumer-facing industries also saw a lift, with wholesale and retail trade growing by 0.6%.

Manufacturing Surges as Car Production Normalizes

Industrial output increased by 1.1%, with the manufacturing subsector jumping 2.1%. A massive 25.5% surge in motor vehicle production drove this result, as the automotive industry finally moved past the operational disruptions caused by a major cyber incident in August. The transport equipment category as a whole grew by 10.7%, marking a significant return to form for British factories.

Construction Remains the Weak Link

Despite the broader recovery, the construction sector continued to struggle, contracting by 1.3%. This marks the second consecutive monthly decline for the industry, as high financing costs and cautious investment sentiment continue to dampen building activity.

While the November rebound provides a welcome lift to quarterly figures, analysts remain watchful. Persistent inflationary pressures and shifting fiscal policies mean the Bank of England will likely maintain a careful approach to interest rate adjustments heading into the spring.