Before Brexit: Uncertainty slows down British growth
What happens after Brexit? Because this is still unclear, entrepreneurs in the UK are holding back on investments. Growth slowed significantly towards the end of the year.
The British economy cooled off significantly in the last quarter of 2018. According to the statistics office ONS, gross domestic product (GDP) rose by 0.2 percent compared to the previous quarter. In the third quarter, GDP growth had been much higher at 0.6 percent, compared with 0.4 percent in the second quarter.
The growth was again burdened by the investments of the companies, which were again declining. Experts attribute the development mainly to the high degree of uncertainty ahead of Brexit, which is due at the end of March. The danger of a disorderly exit from the EU over the country is still hanging. Foreign trade also weighed on overall growth, while consumer spending supported the economy.
British industry also received another damper in December. On a monthly comparison, production fell by 0.5 percent, ONS said. Thus, the British industrial production has fallen for the fifth consecutive month. However, the authority revised the fall slightly in November, it was therefore only 0.3 percent, after previously minus 0.4 percent.
In the narrower manufacturing sector - the demarcation after comparable with the German industry - the production fell in December in the month comparison by 0.7 percent and year on year by 2.1 percent.