UK Economy Contracts as Jaguar Land Rover Cyber-Attack Bites
The UK economy experienced a modest 0.1% growth in the third quarter, but a crippling cyber-attack on Jaguar Land Rover (JLR) manufacturing dragged it down to its lowest level in 73 years.
According to official figures released by the Office for National Statistics (ONS), the expansion was largely due to the devastating impact of the JLR hack on car production. The vehicle manufacturer's production lines came to a halt, resulting in a staggering 28.6% decline in motor vehicle manufacturing output.
The slowdown began earlier, with growth in August revised down to zero from an initial estimate of 0.1%, and was weaker than market expectations of 0.2%. This is the third quarter of consecutive slowdowns, as GDP expanded by just 0.3% between April and June.
These weak figures have fuelled speculation that the Bank of England will cut interest rates in December to boost growth, with many analysts citing economic uncertainty and a softening labour market as contributing factors.
Meanwhile, the latest unemployment data shows an increase to 5%, the highest in four years, further exacerbating concerns about the government's plans to raise taxes. The Chancellor is widely expected to announce tax hikes in her upcoming budget, which could have significant implications for the economy.
Industry experts warn that a combination of economic and political uncertainty has weighed on activity, with business investment declining by 0.3% in the third quarter. This decline has sparked concerns about the government's ability to deliver growth and build an economy that works for working people.
As the Chancellor prepares to present her budget, critics are warning that sharply higher taxes could slam the brakes on the economy, highlighting the need for a more effective economic strategy.
The UK economy experienced a modest 0.1% growth in the third quarter, but a crippling cyber-attack on Jaguar Land Rover (JLR) manufacturing dragged it down to its lowest level in 73 years.
According to official figures released by the Office for National Statistics (ONS), the expansion was largely due to the devastating impact of the JLR hack on car production. The vehicle manufacturer's production lines came to a halt, resulting in a staggering 28.6% decline in motor vehicle manufacturing output.
The slowdown began earlier, with growth in August revised down to zero from an initial estimate of 0.1%, and was weaker than market expectations of 0.2%. This is the third quarter of consecutive slowdowns, as GDP expanded by just 0.3% between April and June.
These weak figures have fuelled speculation that the Bank of England will cut interest rates in December to boost growth, with many analysts citing economic uncertainty and a softening labour market as contributing factors.
Meanwhile, the latest unemployment data shows an increase to 5%, the highest in four years, further exacerbating concerns about the government's plans to raise taxes. The Chancellor is widely expected to announce tax hikes in her upcoming budget, which could have significant implications for the economy.
Industry experts warn that a combination of economic and political uncertainty has weighed on activity, with business investment declining by 0.3% in the third quarter. This decline has sparked concerns about the government's ability to deliver growth and build an economy that works for working people.
As the Chancellor prepares to present her budget, critics are warning that sharply higher taxes could slam the brakes on the economy, highlighting the need for a more effective economic strategy.
] "Cyber attack: because who needs car production when you can have ransomware?" 
[
] The UK's economy is going downhill faster than a meme factory on a Monday morning 
. Who knew the Bank of England would be like "let's cut interest rates, it's not a big deal" 
? "Economic uncertainty: because who needs growth when you can have tax hikes?" 
[
] The Chancellor's budget is going to be like that one aunt at the family reunion – everyone's just waiting for the awkward conversation 
.
And now they're going to try to fix it with more interest rates? Please, that just puts more money in the pockets of the rich and doesn't actually solve anything. We need a more holistic approach to economic growth, not just throwing band-aids at the problem 
. A 0.1% growth is super low and it's all because of the JLR cyber-attack 
! How can you just stop production like that? It's not fair to the workers or the country as a whole 
.
. I feel like the government is just making things harder for everyone without a good plan in place 
like, what's next? hackers gonna take over our entire infrastructure? 
we need some real solutions, not just more austerity measures... 
cyber-attack really affect uk economy so much 
jlr manufacturing line stop production and it impact motor vehicle manufacturing output 28.6% decline wow that's huge 
market expect more 
boost growth but tax hike on the way 
️ might hurt economy and working people 
need effective economic strategy 
more than just tax hikes 