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GDP Slowed to 0.2% in Q4

UK economy growth economic 725 x 500.jpg

The latest GDP figures show that UK GDP in volume terms was estimated to have increased by 0.2% between Quarter 3 (July to Sept) 2018 and Quarter 4 (Oct to Dec) 2018.

In the output approach to measuring GDP, growth in the latest quarter was driven by professional, scientific, administration and support services within the services sector, while production and construction both contributed negatively to GDP growth.

In the expenditure approach to measuring GDP, private consumption and government consumption contributed positively, while gross capital formation and net trade contributed negatively to GDP growth.

Business investment decreased by 1.4% in Quarter 4 2018, the fourth consecutive quarter in which there has been a decrease in growth.

GDP growth was estimated to have slowed to 1.4% between 2017 and 2018, the weakest it has been since 2009.

Construction growth contracted in Quarter 4 2018, the first negative three-month growth since May 2018.  Although new work grew in the quarter, this was offset by a fall in repair and maintenance.  Monthly growth in construction was negative 2.8% in December 2018, with both new work, and repair and maintenance contracting in this period.

Industry Comments

Business Growth Expert and Yomdel CEO, Andy Soloman, commented:

“We’ve seen the impact our continued Brexit debacle is having on areas like the property market, but whichever way you look at it, it’s clear this detriment reaches right across the UK economy.

The slowest rate of annual growth in six years and a month on month decline demonstrates the fragile position we find ourselves in, however, this is not an indication of an imminent recession.

It is simply a snapshot at a time where wavering consumer sentiment is hitting our retail and motor trades in particular, whilst many businesses hold back on investment until the future of our economic landscape becomes clearer.

Add to this the limbo we find ourselves in with regard to a Brexit deal and it’s hardly surprising that the economy isn’t firing on all cylinders.”

Bradley Post of RIFT tax refunds comments:

It's worrying to hear the news that GDP slowed down in the last three months of the year. We have seen the growth in construction at its lowest since 2012 at only 0.6%. There are many reasons behind this but the unsettled economy and uncertainty surrounding Brexit are not helping matters. We urge the UK Government to work on a solution and give a clear direction so industries such as construction can act appropriately and hopefully get back to more aggressive growth” 

(Source: https://www.riftrefunds.co.uk/)

Source : Insight DIY Team

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11 February 2019

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