Economic growth slows again to zero.2% in the final three months of 2018 as automotive manufacturing plunges at its quickest fee in a decade
- Economic growth in October to December was zero.2%, the first ONS estimate says
- The determine is a marked slowdown from zero.6% growth between July and September
- Means the economic system grew at its slowest fee since 2009, recording 1.four% growth
The UK’s financial slowdown continued in the final three of months of 2018 as growth fell to simply zero.2 per cent.
The determine for October to December – fuelled by the steepest decline in automotive manufacturing for a decade – compares to zero.6 per cent in the earlier three months.
It means Britain’s economic system grew by simply 1.four per cent in all of 2018, the worst 12 months since 2009 and the aftermath of the monetary crash.
The economic system was boosted in the summer time by sustained heat climate and the World Cup, the Office for National Statistics mentioned.
The UK’s financial slowdown continued in the final three of months of 2018 as growth fell to simply zero.2 per cent, in accordance to new ONS figures out right this moment (pictured)
The determine for October to December – fuelled by the steepest decline in automotive manufacturing (file picture) for a decade – compares to zero.6 per cent in the earlier three months
Sterling tumbled following the information, dropping zero.four per cent versus the US greenback to 1.28. Against the euro, the pound was down zero.1 per cent at 1.14.
Car manufacturing was down four.9 per cent in the interval, marking the greatest decline since the first quarter of 2009.
Total manufacturing output slipped by 1.1 per cent, the largest decline since the finish of 2012. This included a zero.9 per cent dip in manufacturing.
Construction was additionally decrease, dropping zero.three per cent in the fourth quarter. This follows two consecutive quarters of growth throughout the summer time, when corporations caught up with work delayed by hostile climate early in the 12 months.
Although companies output was up, growth slowed to zero.four per cent following a comparatively sturdy efficiency throughout the summer time.
The ONS mentioned it mirrored a slowdown throughout a quantity of industries, as Brexit-related issues weighed on business-to-business spending at the finish of 2018.
Rob Kent-Smith, head of GDP at the ONS, mentioned: ‘GDP slowed in the final three months of the 12 months with the manufacturing of vehicles and metal merchandise seeing steep falls and building additionally declining. However, companies continued to develop with the well being sector, administration consultants and IT all doing nicely.
Economic growth slowed down in each three month interval of 2018, the ONS’s rolling estimate of GDP (pictured) confirmed
‘Declines had been seen throughout the economic system in December, however single month information might be unstable which means quarterly figures typically give a greater indication of the well being of the economic system.
‘The UK’s commerce deficit widened barely in the final three months of the 12 months, whereas enterprise funding again declined, now for the fourth quarter in a row.’
Compared with the similar quarter in 2017, the UK economic system is estimated to have grown by 1.three per cent, the weakest in six years. It was final weaker in the second quarter of 2012.
On a month-to-month foundation, GDP fell zero.four per cent in December. This was the greatest month-to-month drop since March 2016.
Separately, the ONS information dump confirmed that Britain’s whole commerce deficit widened barely in the final three months of the 12 months by £900 million to £10.four billion, due to an increase in items imports together with vehicles and chemical substances.