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.
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%.
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.
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.
Global markets remained focused on U.S. fiscal concerns, shifting central bank expectations, and renewed Middle East tensions.
Fed Inflation Concerns RemainThe latest Federal Reserve minutes show that inflation remains a central concern for policymakers, even as recent economic data has reduced the urgency for another rate increase. Some officials believe price pressures are becoming more widespread, while a smaller group directly supported further tightening.
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Dollar Falls on Debt Concerns as Yields Rise (24 – 28 August)Global markets entered the week with the US dollar under continued pressure as concerns over federal debt and Treasury market management moved to the center of investor attention. The Dollar Index hovered near 98.8 following sharp losses in the previous week, while the US Treasury’s expanded bond buyback programme pushed longer-term yields and the dollar lower. The move supported gold, silver, and major currencies, while investors assessed its longer-term implications for US borrowing costs and the yield curve.
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