UK Q3 growth slows as car production slumps

Official figures show that the UK economy grew by just 0.1% between July and September 2025, as a sharp fall in car production weighed on overall output. The Office for National Statistics (ONS) said growth slowed from 0.3% in the previous quarter and came in below forecasts of 0.2%.

The main drag was a large cyber-attack on Jaguar Land Rover (JLR), the UK’s biggest carmaker, which halted production at its own plants and suppliers for around five weeks from the end of August. Car and trailer manufacturing in September fell by 28.6% compared with the previous month, contributing to a 2% drop in overall industrial production and a 0.1% fall in GDP for September alone.

The weaker figures come ahead of the Autumn Budget on 26 November, where Chancellor Rachel Reeves faces decisions on tax and spending against a backdrop of slower growth and rising unemployment. The jobless rate has climbed to 5%, the highest level in four years.

Economists say the data underline how dependent UK growth remains on a small number of major manufacturers, as well as the potential economic risks from cyber incidents. Some analysts also suggest the softer outlook could increase pressure on the Bank of England to consider interest rate cuts in the coming months, although any decision will depend on the wider inflation and labour market picture.

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