LONDON, Nov 13, 2025 (BSS/AFP) - Britain's economy slowed in the third quarter, official data showed Thursday, dealing another blow to the Labour government ahead of its annual budget.

Gross domestic product grew 0.1 percent in the July-September period, down on 0.3-percent growth in the second quarter, the Office for National Statistics (ONS) said in a statement.

Analysts' consensus forecast had been for growth of 0.2 percent in the third quarter.

The growth figure comes after official data this week showed UK unemployment rising more than expected to 5.0 percent in the third quarter, ahead of the November 26 budget.

Prime Minister Keir Starmer's Labour party has struggled to consistently grow the economy since returning to power in July last year following 14 years of Conservative party rule.

Many analysts blame the weak growth on a decision by finance minister Rachel Reeves to increase a tax on businesses in her first budget last year.

She has indicated that taxes could rise on some salaries in the upcoming budget to help drive down government debt and to fund public services.

"There's more to do to build an economy that works for working people," Reeves said in response to Thursday's figures.

"At my budget later this month, I will take the fair decisions to build a strong economy," she added.

In September alone, the economy contracted 0.1 percent after a cyberattack on carmaker Jaguar Land Rover hit the manufacturing sector, the ONS data showed.

"Growth slowed further in the third quarter of the year with both services and construction weaker than in the previous period," said ONS director of economic statistics Liz McKeown.

"There was a particularly marked fall in car production in September, reflecting the impact of a cyber incident, as well as a decline in the often-erratic pharmaceutical industry," she added.

The latest quarterly figure was well below the 0.7-percent growth recorded in the first three months of the year.