Britain's economy returned to growth in November, expanding 0.3 percent after a contraction in the month before the autumn budget, according to Office for National Statistics data.
The rise in gross domestic product exceeded economists' expectations of a modest 0.1 percent increase and suggests economic activity has proved more resilient than many polled before the Budget on November 26.
Growth in the three months to November also surprised, rising 0.1 percent compared to forecasts for a 0.2 percent contraction after flat growth in October.
This boom was driven by improvements in manufacturing and services. Car production increased significantly after Jaguar Land Rover resumed factory operations after a major cyberattack disrupted production in early autumn.
The services sector, which contributes more than three-quarters of UK economic output, expanded 0.3 percent in November after shrinking by the same amount in October. Professional, scientific and technical services led the recovery, registering strong monthly growth of 1.7 percent.
Manufacturing output, including manufacturing, rose 1.1 percent this month, while construction activity continued to struggle and declined 1.2 percent.
The latest data suggests uncertainty over the budget had a less immediate impact on real output than business confidence indicators might suggest, although economists cautioned that the macroeconomic picture remains fragile.
Britain's economy has cooled after a relatively strong start to the year, a time when growth data has historically been an outperformer. However, analysts believe the pace could pick up again in early 2026 if the post-Budget environment stabilises.
Sanjay Raja, UK economist at Deutsche Bank, said output was likely to recover in the first quarter of 2026 as uncertainty eases. He said a modest increase in spending by households is expected at the beginning of the year, while investment in both the public and private sectors remains on an upward trend.
City forecasters also expect inflation to return to the Bank of England's 2 percent target by early April, easing pressure on household budgets and leaving room for interest rate cuts.
The Treasury said the figures underline the government's efforts to reverse years of underinvestment, while acknowledging that more work is needed to sustain growth, tackle the cost of living and keep inflation under control.