UK growth slows after big fall in car production

The growth of the UK economy slowed to 0. 1 percent in 2010. Official estimates show that car manufacturing dropped by 1% in the July-to-September period. The figure was below the 0. Analysts predict that growth is the highest priority for Chancellor Rachel Reeves, who has consistently stated that increasing is her highest priority - less than two weeks ahead of the Budget, in which she is likely to raise taxes is likely. Following the cyber-attack on Jaguar Land Rover, the Office of National Statistics reported that there had been a significant decrease in vehicle production in September. However, even if this were taken out, other areas of the economy showed weak growth.

Although there was increase in services - which includes things like shops, restaurants, arts, and entertainment - and building, it was slower than in the previous year. Consumer demand growth remains weak, and economists expect this will continue to stifle for the remainder of the year. The most recent GDP estimates shows that the downturn from the previous 0. 01 percent. Between April and June, there was a 3% rise, and the 0. 3 percent saw between June and July. In the first three months of the year, the growth was 7%. The economy dropped by 0. 2 percent in September alone. With the JLR cyber-attack having an effect, it has fallen by 1%. On August 31, the cyberattack began and resulted in the cancellation of one of the UK's largest automakers' production for five weeks. According to the ONS, September production dropped by 2% overall in September, mainly due to a 28. Following the attack, there was a 6% drop in vehicle output. According to some analysts, the slower-than-expected growth figures had increased the chances of a rate cut from the Bank of England next month. When adding to the poor employment numbers that came out earlier this week, Pantheon Macroeconomics chief economist Rob Wood said the data "all but seals a December rate cut. The slowdown for several companies reflected the knock-on effect of last year's Budget, which increased National Insurance contributions for employers and boosted the national living wage.

Allan Jones, managing director of pie manufacturer TC Morris in Dudley, West Midlands, said the cost of running his company, which employs approximately 50 people, has risen by £200,000 this year.

I believe there is a point in which people are able to pay for a pork pie. So we've been able to pass on some increases, but we''ve had to absorb quite a bit,

he said. Mr Jones said he hoped to see some easing from the forthcoming Budget, including lowering taxes and fuel prices, as well as increased investment opportunities in the form of government-backed grants. Reeves said the UK had the fastest-growing economy in the first half of the year in the UK, but that there's more to do to create a working economy.I will take the appropriate action to create a healthy economy that will help us to reduce waiting lists, reduce national debt, and lower the cost of living,

she said in her Budget later this month. The prime minister and chancellor were

in office but not in power,

according to shadow chancelor Mel Stride, who said Sir Keir Starmer had

stripped the chanceller of responsibility for the Budget.

There was a particularly marked drop in vehicle production in September,

ONS's chief of economic statistics Liz McKeown said, highlighting the effects of a cyberattack as well as a decrease in the often volatile pharmaceutical industry.

Services were the key contributor to growth in the latest quarter, with office leasing and lease, live performances, and retail sales all doing well, partially offset by declines in R&D and hair and beauty salons.

Even with the strain on GDP growth attributed to the JLR cyber-attack, Ruth Gregory, deputy chief UK economist with Capital Economics, said the economy is struggling to recover good momentum.

With tax increases in the upcoming Budget likely to reduce GDP by around 0. 2 percent. With a 2% unemployment rate in 2026, there is no reason to believe that GDP growth will increase much from here,

she said.