 "UK Prime Minister Keir Starmer.")
Britain’s economy returned to modest growth in November, expanding by a better-than-expected 0.3 per cent, official data showed on Thursday, offering a brief respite after a contraction in October but doing little to change expectations of further interest rate cuts.
Figures released by the Office for National Statistics showed gross domestic product rising 0.3 per cent month-on-month, sharply outperforming economists’ forecasts of a 0.1 per cent increase. The data marks a rebound from a revised 0.1 per cent fall recorded in October.
The improvement came despite lingering uncertainty surrounding Finance Minister Rachel Reeves’s budget statement delivered on November 26, which had fuelled months of speculation over potential tax increases and weighed on business sentiment.
However, policymakers at the Bank of England are unlikely to be swayed by the single-month recovery. The central bank has projected zero growth for the October-to-December quarter of 2025, although it estimates underlying momentum to be running at around 0.2 per cent per quarter.
Earlier in 2025, economic activity was disrupted by a cyberattack on carmaker Jaguar Land Rover that depressed vehicle production. The anticipated recovery in manufacturing output has since been weaker than expected, adding to broader concerns over the pace of growth.
The November expansion is also unlikely to derail the government’s push for further interest rate cuts as part of its efforts to ease living costs. More clarity on the health of the economy is expected next week, with fresh inflation and unemployment data due for release.