UK economy grew by just 0.1% in third quarter amid hit from JLR cyber-attack | Economic growth (GDP)

The UK economy grew by just 0.1% in the quarter from July to September as the crippling cyber attack on Jaguar Land Rover hit production.

The latest official figures, published as Rachel Reeves prepares to cut the budget on November 26, show gross domestic product fell by 0.1% in September as car production fell to its lowest level in 73 years due to fallout from the hack.

Highlighting the cyber attack, the Office for National Statistics (ONS) said: “In September 2025, production fell by 2.0%, mainly due to a 28.6% decline in the manufacturing of motor vehicles, trailers and semi-trailers.”

However, the slowdown in GDP started earlier; Growth in August (before the cyberattack) was revised from an initial estimate of 0.1% to zero.

The 0.1% growth rate in the third quarter marked a significant slowdown from the 0.3% growth seen from April to June and was weaker than the 0.2% that markets had expected. September was also below the flat growth forecasts.

The gloomier-than-expected figures are likely to raise expectations that the Bank of England will cut interest rates in December after four out of five members of its monetary policy committee backed a cut last week.

The GDP data follows the ONS’s release on Tuesday showing the unemployment rate has risen to 5%, the highest level in four years.

Martin Beck, chief economist at consultancy WPI Strategy, said: “The figures, along with a softening labor market, provide evidence that economic and political uncertainty are weighing on activity, making it even more likely that the Bank of England will cut interest rates in December.”

The Chancellor is expected to raise taxes in his second budget later this month to offset a forecast downgrade by the independent Office for Budget Responsibility.

Reeves said in a recent speech: “Each of us must do our part to ensure the security of our country and the brightness of its future.”

The ONS said that alongside the decline in manufacturing output as JLR’s production lines remained silent, there was also a slowdown in services production growth in the third quarter, to 0.2% from 0.4% in the previous three months.

The decline in “professional, scientific and technical activities” was pointed out as the driving force of this weak growth.

There was a 0.8% quarterly decline in manufacturing, as well as a 1.5% decline in production from mining and quarrying.

Responding to the GDP figures, Reeves said: “We had the fastest growing economy in the G7 in the first half of the year, but there is still more to do to build an economy that benefits workers.

“In my budget later this month, I will make fair decisions to build a strong economy that will help us continue to shorten waiting lists, cut the national debt and reduce the cost of living.”