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UK economic growth hits six-month low

January 15, 2019

 

Growth in the UK's economy slowed in the three months to November, expanding at its weakest pace in six months. 

 

The economy grew by 0.3% during the period, less than the 0.4% in the three months to October, the Office for National Statistics (ONS) said. 

 

The ONS said manufacturers suffered their longest period of monthly falls in output since the financial crisis, being hit by weaker overseas demand. 

 

It also said the economy grew by 0.2% in November, up from 0.1% in October. 

 

Looking at November alone, industrial output dropped 1.5 percent on the year — the biggest fall since August 2013. 

 

Worries about the global economy have been mounting due to concerns about a trade war between the United States and China. Figures from Germany and France earlier this week also showed falling industrial output. 

 

“There may well be a common theme which is hurting the factory sector throughout Europe, for example changes in the auto industry,” Investec chief economist Philip Shaw said, adding that Brexit worries were also weighing on investment. 

 

Rob Kent-Smith, head of national accounts at the ONS, said: "Growth in the UK economy continued to slow in the three months to November after performing more strongly through the middle of the year. 

 

"Accountancy and house building again grew but a number of other areas were sluggish. 

 

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

 

 

Month on month, construction growth was 0.6% in November. manufacturing contracted 0.3%, while services activity rose 0.3%. 

 

Production as a whole contracted 0.4%. 

 

Worries about the global economy, stoked by an ongoing trade spat between the US and China, have had knock-on effects for other economies, as well as the UK. 

 

Figures from Germany and France earlier this week similarly showed falling industrial output. 

The ONS said the UK economy was returning to moderate growth rates after some volatility earlier in the year, in part related to the weather. 

 

Resources: 

https://www.bbc.co.uk/news/business-46835078 

https://uk.reuters.com/article/us-britain-economy/uk-economy-slows-as-global-worries-brexit-weigh-on-factories-idUKKCN1P50X3 

 

 

 

 

 

 

 

 

 

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