Overview
- Official ONS data show GDP rose 0.1% in July–September, down from 0.3% in Q2 and below the 0.2% economists expected.
- The economy contracted 0.1% in September after motor vehicle output plunged 28.6% linked to a cyberattack at Jaguar Land Rover, with overall production down 2.0% on the month.
- Across the quarter, services grew 0.2% and construction edged up 0.1%, while the production sector shrank 0.5%, the weakest quarterly performance since 2023.
- Unemployment climbed to 5.0% in data earlier this week, signaling a softening labor market alongside the GDP slowdown.
- Investors increased bets on a Bank of England rate cut in December, as the weak print heightens scrutiny of the Nov. 26 Autumn Budget and the government’s fiscal shortfall.