The UK economy bounced back to growth in November, driven by a powerful resurgence in car production following a major cyber attack that had crippled a key industry player.
Stronger-Than-Expected Growth Figures
According to the Office for National Statistics (ONS), gross domestic product (GDP) increased by 0.3% in November. This positive turn follows a revised 0.1% decline in October and outperformed economists' expectations, which had predicted a more modest 0.2% rise for the month.
The data also delivered a further revision for September, changing an initial estimate of a 0.1% fall to a 0.1% increase. This upward adjustment was supported by more complete data, notably from the pharmaceutical sector.
Motor Industry Leads the Recovery
The standout performer in November's economic data was the manufacturing sector, specifically motor vehicle production. The industry saw a staggering 25.5% monthly jump in output as it continued to recover from a severe slump in September.
That earlier downturn was triggered by a factory shutdown at Jaguar Land Rover (JLR) following a cyber attack. The restart of production at JLR's plants provided a significant boost to the overall economic figures for November.
Liz McKeown, ONS Director of Economic Statistics, commented on the sector's recovery: "Data for the latest month show that this industry has now largely recovered."
Construction Sector Contraction
While manufacturing surged, not all sectors shared in the positive news. The construction industry contracted again in November, registering what the ONS noted as its largest three-monthly fall in nearly three years.
This divergence highlights the patchy nature of the UK's economic landscape, where strength in one major industry can offset weakness in others to deliver overall growth.
The latest GDP figures provide a measure of relief for policymakers, suggesting resilience in the face of earlier disruptions. However, the contrasting fortunes of manufacturing and construction underscore the ongoing challenges within different parts of the UK economy.
