The UK’s economy continues to decline, according to figures released by the Office for National Statistics (ONS). In the three months leading up to November, the UK economy grew by just 0.3%. This is less than the 0.4% growth seen in the three months leading up to October.
Part of the poor performance of the UK economy has been in the manufacturing sector. Due to weaker demand in the foreign markets, manufacturers have seen falls in their output to the point where they’re now as low as the 2008 financial crisis.
However, if you compare the economic figures for November alone against October, the growth of the UK economy increased to 0.2% from 0.1%. However, this just shows how the mid-year results were so much stronger than later on in the year.
Which Sectors Did Best?
According to statistics from the ONS, accountancy and house building performed well during the three months leading up to November. The construction industry in particular proved to be very buoyant with growth at 0.6%.
Professional services also experienced growth at 0.3% during the same period.
The causes of the economic issues are hard to pinpoint. However, future concerns with Brexit and the continued trade spat between China and the US seem to be causing some challenges. It should also be noted that Chinese consumer spending is declining and this could have a significant impact on global economic growth.
A Poor December?
While the results for December have not yet been published, there is going to be some concern for the UK economy. Sales across many retailers fell. Those that were particularly hit included Mothercare, Debenhams and Marks & Spencer. Mothercare sales decreased by 11%, while Debenhams saw sales fall by 3%.
However, Tesco and other food retailers did see some positive growth throughout their stores. Those that had significant growth were discount food stores. Aldi, for instance, experienced sales growth of 10%.
December and January also saw some pretty big companies announcing troubles. HMV needs to be rescued and many car manufacturers announced job cuts including 5,000 at Jaguar Land Rover.
Many economists are predicting that early 2019 could be a tough year for the UK economy, but it might improve from about May onwards.