British Prime Minister Theresa May arrives at a European Union leaders summit in Brussels, Belgium December 13, 2018. 

Francois Lenoir | Reuters

British Prime Minister Theresa May arrives at a European Union leaders summit in Brussels, Belgium December 13, 2018. 

May is widely expected to lose and this would leave open the prospect of Britain leaving the EU without any transitional arrangements to smooth the economic shock.

Calls for a second referendum — which May has rejected — are growing.

Friday’s figures showed that compared with a year earlier, the economy stood 1.4 percent larger. In November alone, it expanded 0.2 percent, compared with forecasts for a rise of 0.1 percent.

The data are broadly in line with the Bank of England’s view that the economy is likely to have grown around 0.2 percent over the fourth quarter of 2018.

Britain’s economy slowed after the June 2016 Brexit vote, its growth rate slipping from top spot among the Group of Seven group of rich nations to mid-table or lower.

Consumers in particular were squeezed by the jump in inflation which followed the pound’s tumble after the referendum, especially as wages have failed to keep up.

That said, an unusually warm summer in mid-2018 encouraged many to splash out on drinks and pub and restaurant visits.

But retail sales data suggests consumers reined in spending over Christmas.

Earlier this week closely watched purchasing managers’ surveys pointed to fourth-quarter growth of around 0.1 percent in Britain, according to data firm IHS Markit which compiles the surveys.

Friday’s data showed that Britain’s services sector grew by 0.3 percent over the three months to November, while industrial output dropped by 0.8 percent, the biggest decline since May 2017.

READ  An exhibit dedicated to the Boeing Dreamliner 787 is bringing Japan a little taste of Seattle

Looking at November alone, industrial output dropped 1.5 percent on the year — the biggest fall since August 2013.

Separate figures showed Britain’s goods trade deficit widened unexpectedly in November to 12.0 billion pounds from 11.9 billion pounds, worsened by the highest oil imports since September 2014.



READ SOURCE

WHAT YOUR THOUGHTS

Please enter your comment!
Please enter your name here