UK economy unexpectedly shrinks in September
By Michele Maatouk
Date: Thursday 13 Nov 2025
(Sharecast News) - The UK economy unexpectedly shrank in September, according to data released on Thursday by the Office for National Statistics.
GDP declined by 0.1% on the month following no growth in August - this was revised down from 0.1% growth - and an unrevised fall of 0.1% in July. Economists had been expecting GDP to be unchanged in September.
Production fell by 2.0%, while services grew by 0.2% and construction rose 0.2%. The drop in production was attributed largely to a fall in the manufacture of motor vehicles, trailers and semi-trailers, which slumped 28.6%.
This was due partly to the fact that production at Jaguar Land Rover was halted following a cyber attack.
In the three months to September, GDP grew 0.1% following 0.2% growth in the previous quarter, which was revised down from 0.3%. Economists were expecting 0.3% growth.
ONS director of economic statistics, Liz McKeown, said: "Growth slowed further in the third quarter of the year with both services and construction weaker than in the previous period. There was also a further contraction in production.
"Across the quarter as a whole manufacturing drove the weakness in production. There was a particularly marked fall in car production in September, reflecting the impact of a cyber incident, as well as a decline in the often-erratic pharmaceutical industry.
"Services were the main contributor to growth in the latest quarter, with business rental and leasing, live events and retail performing well, partially offset by falls in R&D [research and development] and hair and beauty salons."
Barret Kupelian, chief economist at PwC, said September's GDP figures show the economy has slipped into "wait-and-see" mode ahead of the Autumn Budget.
"That's consistent with the recent news of a cooling labour market and business investment that remains broadly flat on last year," he said.
"An economy that pauses too long risks losing its rhythm. The onus now rests with the Chancellor to deliver a credible, pro-growth Budget that meets fiscal rules, creates certainty for the future and gets the UK back in step."
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