What's happened
UK GDP growth slowed to 0.2% in Q3 2025, revised down from 0.3%, amid manufacturing setbacks and falling household savings. Experts predict sluggish growth will continue into 2026, with household income impacted by tax increases and economic uncertainty.
What's behind the headline?
The latest figures confirm a clear deceleration in UK economic growth, driven by multiple factors. The cyber attack on Jaguar Land Rover significantly impacted manufacturing output, especially in car production, which is a key sector. Despite the UK’s position as one of the fastest-growing G7 economies earlier this year, recent revisions show growth is now stagnating. Household savings have fallen to their lowest level in a year, while disposable income per capita has declined, reflecting increased tax burdens and economic strain. The Bank of England’s rate cuts and fiscal tightening suggest that the economy will face continued headwinds. This slowdown indicates that the UK’s post-pandemic recovery is losing momentum, and policymakers will need to balance inflation control with support for growth. The forecast for 2026 points to persistent sluggishness, with little immediate relief in sight, unless structural reforms or external factors shift the current trajectory.
What the papers say
The articles from Sky News and The Independent provide consistent updates, emphasizing the downward revision of GDP figures and the impact of the Jaguar Land Rover cyber attack. Sky News highlights the 0.2% growth revision and the role of falling household savings, while The Independent notes the manufacturing sector’s decline and the broader economic slowdown. Both sources agree that the UK remains among the fastest-growing G7 economies but warn of ongoing challenges. The Reuters report confirms the unrevised GDP growth figures and underscores the Bank of England’s cautious outlook, predicting flatlining in the final quarter of 2025. The articles collectively portray a picture of a resilient yet slowing economy, with structural issues and external shocks contributing to the recent downturn.
How we got here
The UK economy experienced rapid growth earlier in 2025, but recent data shows a slowdown. The cyber attack on Jaguar Land Rover and ongoing political uncertainty have contributed to declines in manufacturing and consumer confidence. The Office for National Statistics revised previous estimates, indicating weaker-than-expected performance in Q2 and Q3, with growth now expected to remain subdued through 2026.
Go deeper
Common question
-
Why Is the UK Economy Slowing Down in 2025?
The UK economy has shown signs of slowing growth in 2025, raising questions about what’s causing the slowdown and what it means for the future. From manufacturing setbacks to household income drops, many factors are at play. Below, we explore the key reasons behind the slowdown and what experts are saying about the outlook for 2026.
-
Are Recent Attacks in Russia Linked to Wider Geopolitical Tensions?
Recent targeted attacks on Russian military leaders, including the killing of Lieutenant General Fanil Sarvarov in Moscow, have raised questions about their broader implications. Many experts believe these incidents are part of a pattern linked to ongoing Ukraine-Russia tensions, with Ukrainian intelligence suspected of involvement. But what do these attacks mean for global security and regional stability? Below, we explore the connections, potential impacts, and how governments are responding to these escalating threats.
-
How Do Cyber Attacks Impact the Economy?
Recent cyber attacks, like the one on Jaguar Land Rover, have shown how digital threats can ripple through national economies. But how exactly do these cyber threats affect economic stability? Are major industries at greater risk? And what can companies do to protect themselves? Below, we explore these questions and more to help you understand the connection between cyber security and economic health.
-
What Are the Key News Stories Today You Should Know?
Staying updated with today's top news is essential, but with so many stories unfolding worldwide, it can be hard to keep track. From geopolitical tensions to economic shifts, this page breaks down the most important headlines and answers your pressing questions. Curious about what's happening in Russia, the UK economy, or other major events? Keep reading to get the full picture and reliable updates on today's news cycle.
More on these topics
-
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.
-
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.
-
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based.
-
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.
-
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.
-
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.