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UK Economy Expands Just 0.1% in Q3 as September GDP Slips

The weak print heightens pressure on Rachel Reeves's 26 November Budget, bolstering bets on a Bank of England rate cut.

Overview

  • Preliminary ONS data show GDP rose 0.1% in the July–September quarter, missing 0.2% forecasts after a downwardly revised 0.2% in Q2.
  • Monthly output fell 0.1% in September, with the ONS citing manufacturing weakness and a sharp drop in car production.
  • The ONS linked the fall in auto output to a cyber incident at Jaguar Land Rover, noting broader production contraction alongside a dip in pharmaceuticals.
  • Services made the main positive contribution to growth, while production shrank by 0.5% and construction weakened compared with the previous period.
  • The figures, the last before the 26 November Budget, arrive as unemployment reaches 5%, and economists say they raise the likelihood of a December Bank of England rate cut, with some expecting 3.75%.