London: Britain's gross domestic product (GDP) contracted by 0.1 percent between August and October, according to official data released on Friday. The report highlighted an unexpected economic downturn, with the GDP flatlining in August before shrinking in September and October.
According to Kuwait News Agency, the Office for National Statistics (ONS) attributed the weak economic performance primarily to stagnation in the services sector, which comprises nearly 80 percent of the UK's economy. Despite a trend of steady expansion since January 2024, the services sector showed no growth during the three-month period. Additionally, the production sector saw a contraction of 0.5 percent, marking its sixth consecutive quarterly decline, while manufacturing output fell by 0.7 percent.
The report further noted a slowdown in the construction sector, which saw its growth rate decrease by 0.3 percent. A significant factor contributing to the economic decline was a major cyberattack on carmaker Jaguar Land Rover in August. The attack halted production for approximately 10 days, adversely affecting various industries, including rubber, textiles, plastics, basic metals, and manufactured products, with subsequent impacts on retail sales, particularly in the automotive and software sectors.
The ONS report also indicated that many firms across the services, construction, and production sectors delayed key business decisions during this period. This hesitation was largely due to anticipation of the government's budget announcement on November 26.