Forex News

UK economy stagnates in Q4, manufacturing leads drop

UK economy stagnates in Q4, manufacturing leads drop

According to data released by the British Bureau of Statistics, the preliminary fourth-quarter GDP reading in Britain signaled no growth, matching median estimates.

Britain reported zero growth in the last three months of 2019, compared to the previous reading of 0.3 percent, which has been revised to up 0.4 percent growth. In 2019 overall, economic growth pace accelerated to 1.4 percent from 1.3 percent in 2018.

“There was no growth in the last quarter of 2019 as increases in the services and construction sectors were offset by another poor showing from manufacturing, particularly the motor industry,” said ONS’s Head of GDP Rob Kent-Smith.

The manufacturing sector experienced a tough year in 2019, as it shrank 1.5 percent while the services grew by 0.1 percent only in the final quarter of 2019.

Over the monthly basis, Britain's GDP index grew by 0.3 percent in December, exceeding expectations of a rise of only 0.2 percent and the previous reading that signaled a slowdown by 0.3 percent in November.

In December, manufacturing production soared 0.3 percent, following a 1.6 percent drop in November, while industrial production gained 0.1 percent.

As of 10:19 GMT, the British pound trader slightly higher against the U.S dollar at 1.2927 after hitting a peak of 1.2936. Against the euro, the British currency hit a high of 0.8431, while currently hovering around 0.8450.

Share Article