Britain's economy expanded 0.3% in November, rebounding from October's contraction. The manufacturing sector led the charge with 2.1% growth, driven by Jaguar Land Rover resuming operations after a cyber attack. The Office for National Statistics reported the positive surprise, easing recession fears that had gripped markets late last year.

JP Morgan raised its Q4 GDP forecast to 0.8% annualized, citing faster-than-expected auto production recovery. UBS projects 1.4% growth for 2025, slowing to 1.1% in 2026. Deutsche Bank's Sanjay Raja now sees Q4 growth at 0.2% quarter-on-quarter, eliminating contraction fears and raising the bar for a February Bank of England rate cut.

ING cautioned that monthly data remains volatile, noting construction output is down nearly 3% since July. Analysts cite flat disposable income, reduced government spending, and low investment confidence as headwinds for 2026. While November's rebound was solid, major banks expect a slower trajectory ahead, with inflation falling and credit conditions easing.