This was above analysts’ predictions for 0.1% growth.

Bestinvest personal finance analyst Alice Haine says: “Growth in November was largely driven by an uplift in the services and production sectors, which was partly attributed to the phased restart for manufacturing at Jaguar Land Rover following the cyber-attack in the Autumn.”

But she warns that the struggling labour market threatens the outlook for further growth, if hiring slows, redundancies rise and earnings continue to soften.

Haine adds:“Inflation is believed to have peaked and is expected to edge downwards over the course of 2026 – though there may be bumps along the way amid ongoing geopolitical uncertainty. 

“But with growth subdued and the jobs market stuttering, there is scope for further interest rate cuts this year. 

“Six cuts since August 2024 have already offered some relief for borrowers, so a seventh – perhaps as early as February – would deliver further cheer for those weighed down by heavy debt or mortgage payments.”

Wealth Club chief investment strategist Susannah Streeter also believes there are glimmers of optimism ahead.

She says: “While unemployment looks set to rise, which is causing wariness for consumer-focused sectors, inflation is cooling and interest rates have been cut. 

“This may encourage households who’ve built up nest eggs of savings to be a bit more flash with their cash and spend more, supporting economic growth. 

“With Budget uncertainty now in the rear-view mirror, and some of the onerous Treasury measures on agriculture and hospitality farms being rolled back, it could also boost business sentiment going forward.”

Separate figures from the ONS today revealed the steepest fall in construction since 2023 over the three months to November.