UK economy contracts in December as pre-Brexit slowdown bites – as it happened

Chancellor blames Brexit uncertainty for a sharp slowdown at the end of 2018, but trade secretary points to ChinaHammond: Brexit uncertainty isn’t helpingLiam Fox said Chinese slowdown is to blameBREAKING: Growth slows to just 0.2% in Q4Economy contracted by 0.4% in DecemberManufacturing has shrunk for last six monthsAnnual growth weakest since 2012 1.50pm GMT And finally, here’s our updated news story on the UK growth figures (see here for rolling coverage)The British economy plunged into reverse in December, with a broad-based slump in economic output completing the weakest year for growth since 2012.The Office for National Statistics said gross domestic product contracted by 0.4% from the previous month, fuelled by a fall in spending on the high street over the key festive shopping period. Related: Manufacturing slump puts UK economy into reverse as Brexit looms 1.47pm GMT Our economics editor Larry Elliott sees more bumps ahead for the UK economy:In the meantime, the economy is going to struggle and growth could be even weaker in the first three months of 2019 than it was at the tail end of 2018 if consumers really go into their shells. A recession – two consecutive quarters of negative output – will probably be avoided with the help of higher government spending but it could be a close run thing.Brexit is not the only factor holding back the economy. Global growth is slowing and there are some other EU countries, Germany and Italy for example, that did even worse in the second half of 2018. Pressure to avoid a no-deal Brexit will not be coming just from policy makers in the UK. Related: Britain’s Brexit slump will be quietly cheered in some quarters | Larry Elliott Continue reading…
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