UK Economy Hits the Brakes

New numbers out today show the economy of UK grew by a tiny 0.1% from July to September. That's the official word from the Office for National Statistics, dropping right before Chancellor Rachel Reeves lays out her Autumn Budget plans on November 26. For everyday folks, it means the road to better times might be bumpier than we hoped.

Back in the first half of 2025, things looked brighter—the UK even led the G7 pack with solid gains. But then July through September? A slowdown hit hard. Services, like shops and offices, edged up by 0.2%, and construction managed a slim 0.1% bump. The real drag came from manufacturing, which dropped 0.5%.

A severe cyber attack on Jaguar Land Rover that halted car production, combined with declining sales in commercial vehicles, is to blame. September alone saw the whole economy shrink by 0.1%, after flatlining in August.

Specialists had forecasted 0.2% growth for the quarter, so falling short of that is disappointing. Why does it matter? Growth like this isn't just numbers on a page—it's about jobs, grocery bills, and whether the government can fund schools or hospitals without hiking taxes. Reeves, who's been in the hot seat since Labour took over, called the figures a nudge to keep pushing for an economy that lifts working families.

Over the past year, GDP is up 1.3% from last September, which isn't terrible, but the stall raises eyebrows. Whispers in Westminster say her budget might need tough calls, like tax tweaks, to fix a £30 billion hole in public finances. And with U.S. trade tariffs kicking in since April, global jitters aren't helping.

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