UK economy surprises with stronger-than-expected 0.3% growth in November

The U.K. system grew by a more-than-expected 0.3% successful November, information from the Office for National Statistics showed Thursday.

Economists polled by Reuters had expected a precise humble maturation fig of 0.1%.

The latest information comes aft the economy contracted unexpectedly by 0.1% successful October, a fig that was attributed to the ongoing fallout of a cyber-attack astatine Jaguar Land Rover, which affected car production, and user and concern uncertainty successful the run-up to the Autumn Budget.

Economists expect the U.K. system to amended successful 2026, peculiarly arsenic the Bank of England is apt to proceed connected its involvement rate-cutting path.

"Looking ahead, we expect GDP to rebound powerfully successful the archetypal 4th of 2026," Sanjay Raja, main U.K. economist astatine Deutsche Bank, said successful emailed comments this week.

"Survey information are already improving arsenic the particulate connected the Budget settles and determination are tentative signs that the labour marketplace whitethorn beryllium stabilising,"

"We expect households to walk a small much to commencement the year, and concern to stay connected an uptrend," helium added. Deutsche Bank expects that U.K. GDP maturation this twelvemonth volition beryllium somewhat little than successful 2025 (seen astatine 1.1%) portion it expects quarterly maturation to way 0.35% quarter-on-quarter.

"There are much downside risks to our maturation projection, fixed the vulnerabilities successful the labour market," Raja cautioned, however.

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