UK Q3 Economic Growth Disappoints as JLR Cyberattack Hits Manufacturing — November 13, 2025

UK Q3 Economic Growth Disappoints Amid JLR Cyberattack Impact

The UK economy recorded a modest 0.1% growth in the third quarter of 2025 (July–September), down from 0.3% in the previous quarter and below economists’ expectations of 0.2%. This slow pace indicates that the economy is currently in a stagnant phase, with several key sectors underperforming.

During the same period, Jaguar Land Rover (JLR) faced a major cyberattack in September, which led to a 28.6% reduction in vehicle production, significantly affecting the country’s GDP. The drop in automotive output alone shaved approximately 0.06 percentage points off the quarter’s growth. Several factories were temporarily shut, and shipment delays disrupted both domestic and export markets.

Other sectors also showed weak performance. The services sector grew only 0.2%, slower than the previous quarter, while the construction sector increased by just 0.1%. Private investment remained sluggish, and consumer spending showed limited improvement. Export growth was minimal, and key industries like finance, energy, and technology underperformed expectations. Overall, the economy is neither robust nor rapidly expanding at this time.

These figures pose a challenge for the government, especially as Chancellor Rachel Reeves prepares for the upcoming budget, with rising expectations of tax adjustments to manage fiscal pressures. Additionally, the Bank of England is under pressure to consider a potential interest rate cut, with market predictions indicating roughly an 82% probability. Such a move could stimulate investment and consumer spending.

Economists suggest that the fourth quarter (Q4) may see slight improvement, with Bank of England forecasts estimating 0.3% growth. However, investors and businesses remain cautious, closely monitoring government policy decisions, export performance, and industrial recovery data.

The JLR cyberattack had a major negative impact on the UK manufacturing sector, while other sectors such as services, construction, and trade also contributed to slow GDP growth. Government and central bank actions in the coming months will be critical in restoring economic stability, boosting industrial output, and encouraging private investment.

In summary, the UK economy showed sluggish performance in Q3 2025, influenced by both the JLR cyberattack and weak sectoral growth. Upcoming fiscal and monetary policy decisions will play a key role in restoring growth momentum, investor confidence, and sustainable economic development.