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Quarterly GDP growth falls to six month low of 0.3%: ONS

The economy grew by 0.3% over the quarter, compared with 0.4% in the quarter to October and 0.6% in the quarter to September.

Rozi Jones
|
11th January 2019
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"Manufacturing saw a steep decline, with car production and the often-erratic pharmaceutical industry both performing poorly."

UK GDP grew by 0.3% in the three months to November 2018, continuing to slow after a summer peak, according to the latest ONS statistics.

The quarterly rate of GDP growth is the weakest seen in six months, hindered by a fall in manufacturing output which fell for the fifth month in a row.

Monthly GDP growth was more positive at 0.2%, following flat growth in September and growth of 0.1% in October 2018.

Head of national accounts at the ONS, Rob Kent-Smith, said: “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.”

Ben Brettell, senior economist at Hargreaves Lansdown, commented: "The UK economy slowed in the three months to November, as factory output fell for the fifth month in a row. This marks the manufacturing sector’s longest losing run since the 2008/9 recession. Manufacturing output fell by 0.4% in the month of November.

"The economy as a whole grew 0.3% over the quarter, as compared with 0.4% in the quarter to October and 0.6% in the quarter to September.

"There are two factors at work here. The global economy looks to be stuttering, with the ‘Chimerica’ trade war rumbling on, and Chinese consumer spending on a downward trend. 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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