UK economy grew only 0.1% in the third quarter after JLR cyber-attack
The UK economy grew by just 0.1% between July and September. One major reason was the cyber-attack on Jaguar Land Rover (JLR), which badly affected car manufacturing.
New official figures – released ahead of Rachel Reeves’s important budget on 26 November – show that the UK’s GDP fell by 0.1% in September. Car production dropped to its lowest level in 73 years because of the hack.
The Office for National Statistics (ONS) said: “Production fell by 2% in September 2025 mainly because motor vehicle manufacturing fell by 28.6%.”
The slowdown had already started earlier. Growth in August was revised down from 0.1% to 0%, even before the cyber-attack took place.
The 0.1% growth for the whole quarter is much weaker than the 0.3% seen from April to June and lower than the 0.2% expected by economists. September’s performance was also worse than the forecast of no growth.
These weaker-than-expected results increased the chances that the Bank of England may cut interest rates in December. Last week, the Bank barely voted to keep the interest rate at 4%, with four out of nine members wanting a cut.
On Tuesday, the ONS also reported that the unemployment rate has risen to 5%, the highest in four years.
Martin Beck, chief economist at WPI Strategy, said the figures show that uncertainty in the economy and politics is slowing activity. He said a rate cut in December is now even more likely.
The chancellor is expected to raise taxes in her budget later this month, after the Office for Budget Responsibility downgraded its economic forecast.
Reeves recently said: “We must all do our part to keep our country secure and ensure a bright future.”
However, the weak GDP numbers highlight the risk that higher taxes could slow the economy even more.
James Smith from the Resolution Foundation said: “This slowdown shows the big challenge for the government as it tries to restart growth. The next challenge is to make sure the budget helps growth instead of hurting it.”
Along with the drop in manufacturing because JLR’s factories stopped, the ONS said that growth in the services sector also slowed to 0.2%, down from 0.4% in the previous quarter. Work in professional, scientific and technical fields fell, which dragged down growth.
Construction grew by just 0.1%, worrying for a government that has promised to build many more houses. New construction work fell by 0.2%.
Business investment also fell by 0.3% in the quarter and is only 0.7% higher than a year ago. Increasing private investment has been a key government goal.
A No 10 spokesperson called the GDP numbers “disappointing”. They said the JLR cyber-attack was the main reason for the weak results but insisted the government is still focused on delivering growth. They added that the UK had the fastest-growing economy in the G7 in the first half of the year.
When asked if the chancellor should take responsibility for the slow growth, the spokesperson said: “I don’t accept that.”
Shadow chancellor Mel Stride said the figures show the prime minister and chancellor are “in office but not in power”. He also said that if the prime minister cannot control his own team, he will not be able to control government spending.
Published: 14th November 2025
For more article like this please follow our social media Twitter, Linkedin & Instagram
Also Read:
Freelance Portfolio Tips: 5 Ways to Get Hired Fast
Top 10 UK Entrepreneurs Redefining Business in 2025
UK retail sales slow as shoppers await Black Friday deals
