UK economic growth hits six-month low

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UK economic growth hits six-month low

UK economic growth hits six-month low

uk economic growth hits six month low - UK economic growth hits six-month low

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PA

Growth within the UK’s economic system slowed within the 3 months to November, increasing at its weakest tempo in six months.

The economic system grew through zero.three% right through the duration, lower than the zero.four% within the 3 months to October, the Office for National Statistics (ONS) mentioned.

The ONS mentioned producers suffered their longest duration of per thirty days falls in output because the monetary disaster, being hit through weaker out of the country call for.

It additionally mentioned the economic system grew through zero.2% in November, up from zero.1% in October.

‘Steep decline’

Rob Kent-Smith, head of nationwide accounts on the ONS, mentioned: “Growth within the UK economic system persevered to gradual within the 3 months to November after appearing extra strongly throughout the heart of the 12 months.

“Accountancy and area construction once more grew however various different spaces have been gradual.

“Manufacturing saw a steep decline, with car production and the often-erratic pharmaceutical industry both performing poorly.”

Month on month, building growth was once zero.6% in November. production shrunk zero.three%, whilst services and products job rose zero.three%.

Production as an entire shrunk zero.four%.

Worries in regards to the international economic system, stoked through an ongoing industry spat between the USA and China, have had knock-on results for different economies, in addition to the UK.

Figures from Germany and France previous this week in a similar fashion confirmed falling business output.

The ONS mentioned the UK economic system was once returning to reasonable growth charges after some volatility previous within the 12 months, partly associated with the elements.


Analysis: Dharshini David, BBC economics correspondent

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The worry that Brexit uncertainty could also be weighing on sentiment and spending has grow to be all too acquainted. But those GDP numbers counsel there is extra to the cooling down of growth towards the top of remaining 12 months – and worryingly so.

They counsel call for from our buying and selling companions is faltering. Industry suffered its maximum common fall in output since 2012, with a drop in automotive manufacturing main the price. Separate information confirmed that, as soon as erratic pieces like airplane orders have been stripped out, the gulf between imports and exports – the industry deficit – widened to £nine.5bn within the 3 months to November.

And we aren’t by myself in feeling the pinch. Germany, France and Spain have launched production figures this week that have been all of a sudden grim.

From Apple to Jaguar Land Rover, one of the most greatest international manufacturers were blaming faltering out of the country call for, specifically from China. for his or her woes. They will have some degree. Growth throughout our primary buying and selling companions is tailing off.

It’s a well timed reminder that, no matter preparations are in position come the top of March, we would possibly not have the ability to depend on our economic allies out of the country to stay our factories and workshops thriving.


Commenting at the economic figures Ben Brettell, senior economist at Hargreaves Lansdown, mentioned: “This marks the producing sector’s longest shedding run because the 2008-09 recession.

“There are two elements at paintings right here. The international economic system appears to be stuttering, with the ‘Chimerica’ industry warfare rumbling on, and Chinese client spending on a downward pattern.

“UK companies are also dealing with a significant Brexit headwind, with heightened levels of uncertainty putting business off investment and damaging consumer confidence.”

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