UK financial system unexpectedly shrank in September as JLR hack hammers manufacturing output – enterprise stay | Enterprise
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JLR hack drove UK financial system into contraction in September
Ouch! The UK financial system shrank in September, right now’s GDP report exhibits, because the cyber-attack on Jaguar Land Rover hammered exercise within the manufacturing sector.
UK GDP fell by 0.1% in September, following no progress in August (revised down from a earlier estimate of progress of 0.1%) and an unrevised fall of 0.1% in July.
Manufacturing output fell by 2.0% in September, primarily due to a 28.6% decline within the manufacture of motor automobiles, trailers and semi-trailers. That knocked 0.17 share factors from month-to-month GDP.
Providers and development output each elevated by 0.2% within the month.
September’s contraction pulled progress down to only 0.1% throughout the third quarter of the yr (see earlier publish).
ONS Director of Financial Statistics Liz McKeown says:
“Throughout the quarter as a complete manufacturing drove the weak spot in manufacturing. There was a very marked fall in automotive manufacturing in September, reflecting the impression of a cyber incident, in addition to a decline within the often-erratic pharmaceutical trade.
Key occasions
Chart: How progress has slowed in current months
Though the Jaguar Land Rover assault clearly precipitated a drop in exercise (its UK factories had been closed via September), there has additionally been a wider slowdown.
This chart present how the rolling three month estimate of progress has weakened for the reason that spring:
JLR hack drove UK financial system into contraction in September
Ouch! The UK financial system shrank in September, right now’s GDP report exhibits, because the cyber-attack on Jaguar Land Rover hammered exercise within the manufacturing sector.
UK GDP fell by 0.1% in September, following no progress in August (revised down from a earlier estimate of progress of 0.1%) and an unrevised fall of 0.1% in July.
Manufacturing output fell by 2.0% in September, primarily due to a 28.6% decline within the manufacture of motor automobiles, trailers and semi-trailers. That knocked 0.17 share factors from month-to-month GDP.
Providers and development output each elevated by 0.2% within the month.
September’s contraction pulled progress down to only 0.1% throughout the third quarter of the yr (see earlier publish).
ONS Director of Financial Statistics Liz McKeown says:
“Throughout the quarter as a complete manufacturing drove the weak spot in manufacturing. There was a very marked fall in automotive manufacturing in September, reflecting the impression of a cyber incident, in addition to a decline within the often-erratic pharmaceutical trade.
UK financial system grew 0.1% in July-September
Newsflash: Development throughout the UK financial system has slowed within the third quarter of the yr.
UK GDP expanded by simply 0.1% in July-September – down from 0.3% in April-June – a weak tempo of progress.
And for those who regulate for inhabitants, there was no progress in any respect – with actual GDP per head unchanged.
The providers sector grew by 0.2%, whereas development expanded by 0.1% – and the manufacturing sector contracted by 0.5%.
Whereas we watch for the UK GDP report in quarter-hour, we even have proof that the UK housing market cooled in October.
Purchaser demand, gross sales exercise and new directions all fell additional into destructive territory, the Royal Establishment of Chartered Surveyors reviews this morning.
Surveyors strongly attribute the slowdown to mounting uncertainty forward of the forthcoming Autumn Price range and potential tax-raising measures, RICS says.
Introduction: It is UK GDP Day
Good morning, and welcome to our rolling protection of enterprise, the monetary markets and the world financial system.
The UK financial system shall be beneath the microscope right now, lower than two weeks earlier than a vital price range.
The newest GDP information, to be launched at 7am, will present how the financial system fared in September, and over the third quarter of this yr. Economists predict small quarterly progress – of maybe 0.2%, down from 0.3% in April-June.
September may very well be trickier, although; the financial system could have felt the coolness of pre-budget uncertainty. It definitely confronted disruption within the auto sector, with carmaker Jaguar Land Rover pressured to droop manufacturing for the month resulting from a cyber assault.
The JLR hack drove automotive manufacturing at British factories to the bottom stage for a September since 1952, which is able to absolutely hit the broader measure of exercise.
A poor GDP report will intensify the criticism of chancellor Rachel Reeves’s dealing with of the financial system, as she prepares her price range assertion on 26 November.
Weak progress might additionally spur the Financial institution of England in direction of slicing rates of interest once more, with a December reduce already wanting fairly possible….
The agenda
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7am GMT: UK GDP report for September, and Q3 2025
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7am GMT: UK commerce report for September
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9am GMT: IEA’s month-to-month oil market repor
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Midday BST: Financial institution of England policymaker Megan Greene: Panellist at Chatham home occasion ‘Is the age of central financial institution independence beneath risk?’
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