Britain's economy grew 0.1% in the third quarter of 2025, official figures showed on Thursday. Economists polled by Reuters, as well as the Bank of England, had forecast 0.2% growth in gross domestic product for the July-September period.

The truth about the UK economy this year is much less exciting. The Bank of England said last week that by the end of 2025 it expected real GDP growth in the year to have been 1.4 per cent, exactly on track to meet the Office for Budget Responsibility’s forecast from March.

Britain's economy barely expanded in the third quarter, held back by September's cyber attack on Jaguar Land Rover, according to data on Thursday that underlined the backdrop of slow growth as finance minister Rachel Reeves readies her budget.

The first estimate of third-quarter UK GDP will be released next Thursday. Quarterly output averaged 0.5 per cent in the first half of the year; this relative resilience prompted the EY Item Club to upgrade its full-year forecast from 1 to 1.5 per cent this week. But opinion is split on what happens next.

Despite the fact that ONS figures show London accounts for almost a quarter of the UK economy, the report shows the capital has been in a "stagnant" state since the 2008 financial crisis, and cites housing costs and availability as some of the key factors for its stuttering growth.

Britain's economy will stagnate in 2023 in the face of high inflation, lagging behind its peers, and the government should consider easing up on tax increases or spending more, the Organisation for Economic Co-operation and Development said.

Growth was held back by a cyberattack on major car maker Jaguar Land Rover; September production of cars fell by nearly 30% Read more at The Business Times.

It comes as UK average regular earnings growth fell to 4.6% over the same period to September. That figure was 0.8% higher after taking Consumer Prices Index inflation into account, the Office for National Statistics has said. The figures are up from 4.8% in the three months to August, according to the Office for National Statistics.