A case of slowdown in manufacturing, construction, car and high street businesses indicate the economy’s slowdown.
According to analysts, the UK expanded by 0.6 per cent between April and June. The growth was soon short-lived as the construction, car and high street businesses report with negative signals on growth.
UK Chancellor Philip Hammond said the UK needed to enter ‘divorce’ negotiations with the EU at a ‘position of strength’. He had also warned about the current slowdown.
“Those negotiations will signal the beginning of a period of adjustment, but I am confident we have the tools to manage the challenges ahead, and along with the Bank of England, this government will take whatever action is necessary to support our economy and maintain business and consumer confidence,” he said.
The Pound Sterling is still taking a pounding worldwide despite growth figures. Borrowing may also receive a cut in interest rates as part of the quantitative easing money creation program and boosting lending to households and businesses for better consumer activity.
the SMMT’s chief executive, Mike Hawes, said the outlook for UK car manufacturing was uncertain now that Britain had opted to pursue a future outside the EU.
“The latest increase in production output is the result of investment decisions made over a number of years, well before the referendum was even a prospect,” he said.
Warning that this success was linked to membership of the single market, he said: “These decisions were based on many factors but primarily on tariff-free access to the single market, economic stability and record levels of productivity from a highly skilled workforce. To ensure the sector’s continued growth, and with it the thousands of jobs it supports, these must be priorities in future negotiations.”