The UK economy delivered an unexpected boost at the end of last year, posting growth of 0.3 per cent in November and beating gloomy forecasts.
Services Sector Leads Surprise Growth
Official data released on Thursday, 15 January 2026, revealed a surprise return to growth for the UK economy. The 0.3 per cent expansion in November was primarily fuelled by a strong performance in the services sector. Key areas showing particular strength included retail trade, travel agents, tour operators, and recreation services, indicating robust consumer activity in the lead-up to the festive period.
Manufacturing and Construction Rebound
A significant secondary driver of growth came from the manufacturing sector, which largely recovered during the month. This was helped by the partial restart of construction at the Jaguar Land Rover plant, following severe disruption caused by a major cyber-attack. The rebound in this high-value sector provided a welcome lift to the overall economic figures.
Revised figures also painted a more positive picture for the preceding quarter, indicating that the economy expanded by 0.1 per cent over the three months to November.
Challenges and Calls for Support
Despite the positive November data, early indicators for December suggest weaker trading conditions, potentially tempering the overall fourth-quarter performance. Business leaders have continued to call for further government support to ensure the growth is sustained beyond this short-term uplift.
Reacting to the figures, Chancellor Rachel Reeves described the data as "welcome news" and suggested it could pave the way for a potential cut in interest rates, which would provide relief to homeowners and businesses alike. However, economists caution that the underlying fragility, highlighted by the weaker December signals, means the path to consistent economic recovery remains uncertain.
