What's happened
UK GDP growth slowed to 0.2% in Q3 2025, revised down from 0.3%, after a cyber attack hit Jaguar Land Rover. Despite revisions, the UK remains among the fastest-growing G7 economies, but household income fell sharply, and growth is expected to remain sluggish into 2026.
What's behind the headline?
The latest GDP figures confirm a persistent slowdown in the UK economy, with growth revised downward for the second quarter and third quarter. The cyber attack on Jaguar Land Rover highlights vulnerabilities in manufacturing, which has historically been a key driver of economic activity. Despite the slowdown, the UK remains a top performer within the G7, alongside Japan, with a 0.9% growth rate. However, the decline in household income and savings ratio indicates consumer caution, likely exacerbated by tax hikes and fiscal tightening. The Bank of England's expectation of flatlining growth in late 2025 suggests that the UK’s economic trajectory will remain subdued into 2026. The outlook points to a fragile recovery, with private sector activity subdued and household finances strained, which could hinder a swift rebound. The combination of external shocks and internal fiscal policies will shape the UK’s economic path in the coming months, with further revisions possible as new data emerges.
What the papers say
The Independent reports that the UK GDP growth slowed to 0.2% in Q3 2025, revised down from 0.3%, with a notable impact from a cyber attack on Jaguar Land Rover. The Bank of England's recent statement aligns with this outlook, expecting flat growth in late 2025. Reuters confirms the GDP revision and highlights that the UK remains among the fastest-growing G7 economies, with a 0.9% growth rate. The articles collectively emphasize the ongoing slowdown, the impact of manufacturing disruptions, and cautious consumer behavior driven by tax increases and fiscal tightening. While some sources note the resilience of the service sector, the overall tone underscores a cautious outlook for 2026, with continued sluggish growth expected.
How we got here
The UK economy experienced a slowdown in 2025, with growth revisions reflecting weaker manufacturing output, notably in car manufacturing following a cyber attack on Jaguar Land Rover. Despite this, the UK maintained a strong growth rate relative to other G7 nations, driven by service sector resilience. Household income declined due to increased taxes, and the household savings ratio fell to its lowest since mid-2024, signaling cautious consumer behavior amid economic uncertainty.
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Common question
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More on these topics
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The Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the UK Parliament.
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Jaguar Land Rover Automotive PLC is the holding company of Jaguar Land Rover Limited, a British multinational automotive company with its headquarters in Whitley, Coventry, United Kingdom, and a subsidiary of Indian automotive company Tata Motors.
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The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Japan is an island country of East Asia in the northwest Pacific Ocean. It borders the Sea of Japan to the west and extends from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south.