The UK's economic expansion slowed sharply in the third quarter of the year, with official statistics confirming growth of just 0.1% between July and September.
Official Figures Paint a Picture of Slowing Momentum
The Office for National Statistics (ONS) left its initial estimate for third-quarter gross domestic product (GDP) growth unrevised at 0.1%. The data revealed a clear deceleration in economic momentum, a trend highlighted by the statistics body.
Liz McKeown, ONS director of economic statistics, stated: "Today's updated figures paint the same picture as our initial estimate, with growth continuing to slow in the third quarter." She noted that growth in the services sector was "partially offset by falls in production, with a marked drop in car manufacturing."
Cyberattack Impact and Revised Historical Data
A significant factor behind the weak performance was a disruptive cyber incident at automotive giant Jaguar Land Rover (JLR), which severely hampered manufacturing output during the period.
Furthermore, the ONS revised its reading for the preceding quarter. Growth for the three months to June was adjusted down to 0.2% from a previous estimate of 0.3%. In a slight upward revision, growth for the final quarter of 2023 was increased to 0.3% from 0.2%.
Despite these quarterly adjustments, the ONS maintained its projection for overall economic growth in 2024 at 1.1%.
UK's Standing in the G7
Even with the marked slowdown, the UK's economic performance relative to its international peers remained relatively strong. The data confirmed that the UK was the joint fastest-growing economy in the G7 for 2024, matching Japan's growth rate of 0.9%. The United States followed behind this leading pair.
The latest figures underscore the challenges facing the UK economy as it navigates a period of subdued activity, with specific industrial shocks like the JLR cyberattack having a measurable impact on national output.
