UK Economic Growth Falls Short in Third Quarter as JLR Cyberattack Drags Down Output
The United Kingdom recorded weaker than expected economic growth in the third quarter, with official data showing that a major cyberattack on Jaguar Land Rover weighed heavily on national output. The figures have raised fresh concerns about the resilience of the British economy at a time when households, industries, and policymakers are already dealing with slowing momentum.
According to the Office for National Statistics, the economy expanded by only 0.1 percent between July and September. The small increase was far below what analysts had anticipated and marked a noticeable slowdown from earlier in the year. Much of the disappointment stemmed from September’s performance, when growth slipped into negative territory following disruptions caused by the JLR cyber incident.
Jaguar Land Rover, one of the country’s most important automotive manufacturers, faced severe production challenges after the attack disabled parts of its digital systems. The result was a sharp fall in car manufacturing at a moment when the sector was already under pressure due to supply chain constraints and weaker global demand. The ONS reported that output in motor vehicle production contracted by more than a quarter during the month, pulling down overall industrial performance.
Economists say the timing of the cyberattack could not have been worse. The UK economy was already losing steam, with consumer spending stagnant and business investment still struggling to recover. Revised data for August showed no growth at all, indicating that the slowdown began well before the JLR disruption.
Financial markets reacted cautiously to the latest numbers. Investors now believe the Bank of England may have stronger justification to lower interest rates sooner than expected. The central bank recently voted to keep rates unchanged, but several policymakers signalled that weakening economic conditions could shift the balance toward an eventual cut.
Labour market indicators have also added to the unease. Earlier this week, figures showed that unemployment had risen to five percent, the highest level in four years. Combined with sluggish economic activity, the numbers suggest that both households and businesses may be entering a more fragile period.
Despite the grim headline figures, some analysts caution that the situation may not be as bleak as it appears. They note that manufacturing disruptions caused by cyberattacks tend to be temporary and that JLR is expected to restore normal production levels in the coming months. However, others warn that persistent vulnerabilities in digital infrastructure could pose ongoing risks for companies across the UK.
Chancellor Rachel Reeves, who is preparing her first major budget later this month, faces mounting pressure to outline a clear strategy for stimulating growth. The latest GDP figures will likely amplify calls for targeted investment, stronger cybersecurity support for industries, and measures to bolster productivity.
For now, the economy remains on shaky ground. With global uncertainties rising and domestic industries feeling the strain, the UK enters the final quarter of the year with more questions than answers about its economic trajectory.
