ONS reports minimal GDP growth in September quarter as policymakers consider next steps
The UK economy recorded a modest 0.1% increase in gross domestic product (GDP) for the third quarter of the year, according to latest figures released by the Office for National Statistics (ONS).
This growth rate was below the 0.2% anticipated by economists and marks a slowdown from the 0.3% expansion seen in the previous quarter.
September saw a 0.1% monthly contraction in GDP, following a flat performance in August and a similar decline in July.
The manufacturing sector was notably affected, with production output falling by 2% in September. This was largely attributed to a 28.6% drop in the manufacture of motor vehicles, trailers and semi-trailers, after a cyber-attack disrupted Jaguar Land Rover’s operations for five weeks.
GDP grew 0.1% in Quarter 3 (July to Sept) 2025.
— Office for National Statistics (ONS) (@ONS) November 13, 2025
Services (+0.2%) and construction (+0.1%) grew while the production sector fell (-0.5%).
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“Growth slowed further in the third quarter of the year with both services and construction weaker than in the previous period. There was also a further contraction in production,” said Liz McKeown, director of economic statistics at the ONS. “Across the quarter as a whole manufacturing drove the weakness in production. There was a particularly marked fall in car production in September, reflecting the impact of a cyber incident, as well as a decline in the often-erratic pharmaceutical industry.”
Despite the downturn in manufacturing, both services and construction sectors posted slight increases of 0.2% in September. However, the overall quarterly growth remained subdued, continuing a downward trend from earlier in the year.
“A shrinking economy is not what any Chancellor wants days before a Budget,” said Nicholas Hyett, investment manager at Wealth Club. “However, in this case it’s the cyberattack on Jaguar Land River that has slammed the brakes on UK economic growth, and without it, economic activity would be showing a modest pick up. The massive knock on effects of events at a single company shows how vulnerable the UK economy is at the moment.”
The government is preparing for the Autumn Budget, scheduled for Nov. 26. Chancellor Rachel Reeves has indicated that fiscal measures may be necessary to address current economic challenges.
Economists have raised concerns that potential tax increases could weigh on consumer spending and broader economic activity. Some analysts suggest that the Bank of England may consider reducing interest rates at its December meeting, depending on forthcoming inflation and labour market data.
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