UK growth slows as cyber-hit car sector slumps

UK economic growth slowed sharply in the three months to September, expanding by just 0.1%, according to the latest figures from the Office for National Statistics (ONS). The reading – published two weeks before the Chancellor delivers her Autumn Budget -marks a deceleration from 0.3% growth in Q2 and comes amid steep declines in motor vehicle manufacturing following a major cyber incident.

The economy is now estimated to be 1.3% larger than a year ago, but real GDP per head showed no growth over the quarter, rising only 0.8% compared with the same period in 2024.

In output terms, growth was supported by a 0.2% increase in services and a 0.1% rise in construction, while the production sector contracted by 0.5%.

The ONS confirmed it had updated historical GDP estimates back to Q1 2024 in line with revised UK trade data and improvements to the measurement of precious metals. Despite these adjustments, headline real GDP growth across 2024 and 2025 remains unchanged, though there were minor revisions to the GDP deflator and current-price GDP.

The monthly figures reveal a more difficult picture. GDP shrank by 0.1% in September, following zero growth in August (revised down from a 0.1% increase) and a 0.1% fall in July.

The standout weakness came from the production sector, which plunged 2.0% in September alone. Most of that was driven by a dramatic 28.6% fall in motor vehicle manufacturing, subtracting 0.17 percentage points from monthly GDP.

Industry data suggested a “large fall” in vehicle output after a cyber incident paused operations at Jaguar Land Rover, while restructuring at other plants further reduced commercial vehicle volumes. The UK’s Cyber Monitoring Centre classified the disruption as a “Category 3 systemic event.”

The tepid figures increase the stakes for Chancellor Rachel Reeves, who will deliver her Budget in two weeks and has pledged to “rebuild” the economy. Reeves said the ONS release showed “more to do to build an economy that works for working people.”