Fall in vehicle production drags down UK economy

BRITAIN’S economy continued to cool in the three months to November as a “steep decline” in manufacturing activity dragged on growth amid increasing Brexit uncertainty.

Over the three months to November, GDP rose 0.3 per cent compared with the previous quarter, according to the Office for National Statistics (ONS).

Growth of 0.4 per cent was recorded in the three months to October. The ONS said the largest downward drag came from a fall in motor vehicle production of 4.3 per cent.

In November alone, factory output fell 0.4 per cent, the fifth consecutive month of decline, and the manufacturing sector’s longest losing streak since the financial crisis in 2008.

The manufacturing sector has been hit by recent factory shutdowns – such as at Jaguar Land Rover – and weaker consumer demand for cars and declining diesel sales.

Head of national accounts at the ONS Rob Kent-Smith said yesterday: “Growth in the UK economy continued to slow in the three months to November 2018 after performing more strongly through the middle of the year.

“Accountancy and housebuilding 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.”