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GDP falls 0.3% in November: ONS

Rolling three-month growth was 0.1% in November 2019, down from 0.2% in October.

Rozi Jones
|
13th January 2020
decline graph chart down decrease drop
"Long term, the economy continues to slow, with growth in the economy compared with the same time last year at its lowest since the spring of 2012."

Monthly GDP fell by 0.3% in November 2019, following growth of 0.1% in both September and October 2019, according to the latest statistics from the ONS.

Rolling three-month growth was 0.1% in November 2019, down from an upwardly revised 0.2% in October. This followed a period of volatility throughout the first half of 2019, in part linked to changes in the timing of activity around the originally planned departure date of the UK from the European Union.

Additionally, weakening services and falling production resulted in subdued GDP growth in the three months to November. The production sector fell by 0.6% over the period, the second consecutive three-month decline.

In seperate research, the National Institute of Economic and Social Research (NIESR) predicted that the UK economy is on course to post zero growth in the fourth quarter of 2019, consistent with growth of 1.4% in 2019 as a whole. After analysing recent trends, NIESR forecasts service sector-driven growth of 0.3% in the first quarter of 2020.

Rob Kent-Smith, head of GDP at the ONS, said: “Overall, the economy grew slightly in the latest three months, with growth in construction pulled back by weakening services and another lacklustre performance from manufacturing.

“The UK economy grew slightly more strongly in September and October than was previously estimated, with later data painting a healthier picture.

“Long term, the economy continues to slow, with growth in the economy compared with the same time last year at its lowest since the spring of 2012.

“The underlying trade deficit narrowed as exports grew faster than imports.”

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