UK’s Economic Growth Falters in Q3 2025 After Jaguar Land Rover Cyberattack

The UK economy barely grew in the third quarter of 2025, as a cyberattack on Jaguar Land Rover (JLR) in September disrupted production and weighed on overall output, according to official data released Thursday.

The Office for National Statistics (ONS) said the economy expanded by just 0.1% between July and September, slowing from a 0.3% increase in the previous quarter. Economists surveyed by Reuters and the Bank of England had expected growth of 0.2%.

In September alone, output fell 0.1%, compared to forecasts for flat growth. The ONS reported a 28.6% drop in motor vehicle production—the sharpest monthly decline since April 2020, when the COVID-19 pandemic began.

Citing the Society of Motor Manufacturers and Traders (SMMT), the ONS noted that “a cyber incident halted production at a major manufacturer.” JLR, owned by India’s Tata Motors (TAMO.NS), operates three factories in the UK and typically produces around 1,000 vehicles a day.

The weaker-than-expected data underscores the sluggish pace of recovery as Finance Minister Rachel Reeves prepares to unveil her budget on November 26. While the government has pledged to “accelerate” economic growth, momentum remains modest.

Despite the setback, the International Monetary Fund (IMF) said last month that the UK is still on track to post the second-fastest growth among G7 economies in 2025, behind only the United States.