IoD press release  Growth ticks up, but momentum remains fragile

“GDP growth recorded a welcome uptick in November, lifting quarterly growth to 0.1%. A strong recovery in the manufacturing of motor vehicles following the JLR shut-down helped lift growth in manufacturing output. However, the underlying picture remains fragile, with signs that pre-Budget uncertainty dampened demand and slowed growth towards the end of last year. Supports for growth remain precarious in both services and manufacturing with only half of the subsectors posting growth. After a strong September, consumer-services output fell in both October and November, while construction output dropped dramatically in November.

“As the new year begins, there is some hope that policy uncertainty may diminish over the year. In particular, we head towards the Spring Statement with a larger buffer against the fiscal rules which will not be assessed this time round. But recent policy reversals – even when welcome – ferment their own uncertainty. In 2026, we need to get policy decisions right the first time and push harder in those areas which will deliver the strongest growth payoffs. Today’s approval by Heathrow’s board for the airport’s expansion plans must be matched by swifter progress on planning reform. Upgrading the UK’s ageing infrastructure and unlocking the government’s public investment commitments will be a critical to supporting growth and lifting productivity.”