UK Economy Beats Forecasts with 0.3% Growth in November; Ofwat Investigating South East Water over Outages – as it Happened
The UK economy has returned to growth, outperforming expectations with a stronger-than-anticipated 0.3% expansion in November, according to the Office for National Statistics (ONS). The better-than-expected data is likely to lift morale among policymakers, who had been bracing themselves for weaker economic performance following recent Brexit-related uncertainty.
This positive turn of events comes as investors and economists breathe a sigh of relief after an October contraction that was heavily impacted by the cyberattack on Jaguar Land Rover, which depressed vehicle production. The latest growth figure is in line with forecasters' estimates, but analysts say it's essential not to read too much into this month's data, given its volatility.
Economic output earlier in 2025 suffered from various headwinds, including supply chain disruptions and inflation concerns that had a dampening effect on consumer spending. However, the latest growth figures show that many parts of the economy have bounced back from these challenges.
Growth in September has also been revised upward to 0.1%, indicating that the economic downturn may be less severe than previously thought. The ONS noted that there is always a margin of error when estimating monthly GDP data and expressed caution about its reliability.
Other positive news for policymakers includes lower gilt yields, which means that borrowing costs have fallen as markets expect weaker inflation and further cuts by the Bank of England. This should give them more flexibility to implement fiscal policy changes, potentially benefiting Labour's election prospects.
However, there are other concerns on the horizon, including a growing construction sector slump that is causing output to decline by over 1% since July. This downturn highlights the ongoing challenge facing policymakers as they try to revive economic growth without fueling inflationary pressures.
Meanwhile, Britain's stock market has surged, with the FTSE 100 hitting an all-time high of 10,235 points, driven largely by gains in financial stocks such as HSBC and Barclays. Analysts attribute this boost to the positive GDP data and expectations of a more expansionary fiscal policy stance.
In another piece of news related to the UK's water industry, regulator Ofwat is investigating South East Water over repeated outages since November that left tens of thousands of households without drinking water across Kent and Sussex. The probe comes as the company's chief executive, David Hinton, is set to receive a £400,000 long-term bonus regardless of his performance if he stays on until July 2030.
Across the Atlantic, Germany's economy has also made a positive start to the year, with growth estimated at 0.2% year-on-year in 2025 according to the Federal Statistical Office. Household consumption and government spending were key drivers behind this expansion.
However, economists caution that investment fell during the same period, underscoring the ongoing challenge policymakers face in balancing stimulus policies with concerns about inflationary pressures.
The UK economy has returned to growth, outperforming expectations with a stronger-than-anticipated 0.3% expansion in November, according to the Office for National Statistics (ONS). The better-than-expected data is likely to lift morale among policymakers, who had been bracing themselves for weaker economic performance following recent Brexit-related uncertainty.
This positive turn of events comes as investors and economists breathe a sigh of relief after an October contraction that was heavily impacted by the cyberattack on Jaguar Land Rover, which depressed vehicle production. The latest growth figure is in line with forecasters' estimates, but analysts say it's essential not to read too much into this month's data, given its volatility.
Economic output earlier in 2025 suffered from various headwinds, including supply chain disruptions and inflation concerns that had a dampening effect on consumer spending. However, the latest growth figures show that many parts of the economy have bounced back from these challenges.
Growth in September has also been revised upward to 0.1%, indicating that the economic downturn may be less severe than previously thought. The ONS noted that there is always a margin of error when estimating monthly GDP data and expressed caution about its reliability.
Other positive news for policymakers includes lower gilt yields, which means that borrowing costs have fallen as markets expect weaker inflation and further cuts by the Bank of England. This should give them more flexibility to implement fiscal policy changes, potentially benefiting Labour's election prospects.
However, there are other concerns on the horizon, including a growing construction sector slump that is causing output to decline by over 1% since July. This downturn highlights the ongoing challenge facing policymakers as they try to revive economic growth without fueling inflationary pressures.
Meanwhile, Britain's stock market has surged, with the FTSE 100 hitting an all-time high of 10,235 points, driven largely by gains in financial stocks such as HSBC and Barclays. Analysts attribute this boost to the positive GDP data and expectations of a more expansionary fiscal policy stance.
In another piece of news related to the UK's water industry, regulator Ofwat is investigating South East Water over repeated outages since November that left tens of thousands of households without drinking water across Kent and Sussex. The probe comes as the company's chief executive, David Hinton, is set to receive a £400,000 long-term bonus regardless of his performance if he stays on until July 2030.
Across the Atlantic, Germany's economy has also made a positive start to the year, with growth estimated at 0.2% year-on-year in 2025 according to the Federal Statistical Office. Household consumption and government spending were key drivers behind this expansion.
However, economists caution that investment fell during the same period, underscoring the ongoing challenge policymakers face in balancing stimulus policies with concerns about inflationary pressures.
just wondering how long it'll take for the gov to act on those construction sector slump issues... seems like they're still stuck in Brexit limbo 
anyway, nice to see some growth numbers, but we should be cautious about reading too much into 'em 
we've got inflation concerns and supply chain disruptions still looming over us, so can we really say that this growth is the answer to all our economic prayers? 
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! 0.3% growth in November is a solid start to the year and I think it's a huge relief for the government after all that Brexit uncertainty 
. I was worried we were gonna see some major contraction, but it looks like things are starting to bounce back now.
. Fingers crossed they use this opportunity to boost growth and make Labour's election prospects even brighter 
. But let's not get ahead of ourselves... that construction sector slump is still a major concern, so we need to keep an eye on how that plays out 
. And it's interesting to see the UK stock market surging, but let's not get too caught up in the hype... what about when inflation kicks back in? 
i mean i was worried about brexit and all that but it looks like things are looking up 
now lets hope this means better times for labor and a stronger sterling 
️ btw south east water gotta get their act together those outages cant be funny 
so finally good news for the UK economy 
it's like a weight has been lifted off their shoulders after all those Brexit-related worries 
and it's awesome to see that they're beating forecasts 
I mean, 0.3% growth is nothing to sneeze at 
especially considering how uncertain things were just a few months ago. And let's be real, investors and economists are breathing a sigh of relief over here 
lower gilt yields = cheaper borrowing costs = more flexibility for policymakers 
. Anyway, with lower gilt yields and a more expansionary fiscal policy stance, maybe we'll get some good news about inflation and stuff.
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? like, who designed those things? and how did they even work? it's wild when you think about it... anyway, back to the economy...