UK GDP Growth Slows in July-September Quarter Amid Car Production Slump
The UK's GDP grew by 0.1% in the July–September quarter, falling short of the 0.2% forecast and down from 0.3% in April–June and 0.7% in the first quarter. This sluggish growth was supported by services and construction sectors but remained subdued overall. Consumer spending was weak, with limited momentum across most sectors, and declines were noted in research and development as well as hair and beauty services.
Car production notably slumped, with September output down 28.6% following a cyber-attack on Jaguar Land Rover that halted production for about five weeks from August 31. Overall car manufacturing in September fell by 2%. The Office for National Statistics (ONS) attributed the September decline partly to this cyber incident and to an erratic pharmaceutical sector.
Some analysts have said that the weaker data increases the likelihood of a Bank of England interest rate cut in December. Chancellor Rachel Reeves highlighted that the UK was the fastest-growing G7 economy in the first half of the year and pledged that Budget measures would be implemented to boost growth, reduce debt, and lower living costs. Meanwhile, Shadow Chancellor Mel Stride criticized the Prime Minister and Chancellor as being "in office but not in power," stating that Keir Starmer had stripped the Chancellor of Budget responsibility.
