Stuttering end to 2019 with 0% growth ‘likely to be pre-Brexit low’

Britain's stuttering economy came to a halt during the last three months of 2019 with no growth in GDP, official figures reveal today.

The economic flatlining came at a time of huge political turmoil over Brexit, only ended by Boris Johnson’s decisive general election win over Jeremy Corbyn’s Labour less than three weeks before the end of the year.

It coincided with the run-up to the high street’s worst Christmas on record and another slump in manufacturing output led by a big fall in car production.

Rob Kent-Smith, head of GDP at the Office for National Statistics, said: “There was no growth in the last quarter of 2019 as increases in the services and construction sectors were offset by another poor showing from manufacturing, particularly the motor industry.

“The underlying trade deficit widened, as exports of services fell, partially offset by a fall in goods imports.”

Monthly GDP figures showed growth of 0.3 per cent in December cancelling out a 0.3 per cent fall in November.

For the year as a whole, Britain’s economy advanced by just 1.4 per cent, slightly up on the 1.3 per cent recorded in 2018, but the fourth consecutive year of growth below the two per cent benchmark widely regarded as “par”.

However, economists said the last quarter of 2019 is likely to represent a low point, with anecdotal evidence and business surveys pointing to a recovery in confidence in the new year.

Ayush Ansal, chief investment officer at Crimson Black Capital, said: “That the economy pulled through arguably the most febrile political quarter in decades with flat growth will be seen by some as an achievement in itself.

“There’s little to celebrate in this data but the fact that December’s growth managed to negate the fall of November will provide a certain lift to markets. Some will see the December uptick as the first sign of the Boris Bounce, which could set the tone for 2020 as a whole.”

Chancellor Sajid Javid said: “We’ve broken the deadlock and left the EU — now we need to seize this moment to level up and prepare our great nation for long-term success.

“In my Budget, exactly one month from today, I’ll set out how we will move forward, with more ambition and new thinking, and empower our people and businesses so everyone has the opportunity to thrive.”