Britain's economy contracted sharply in April after the biggest decline in car production since records began
LONDON - Britain’s economy contracted sharply in April after the biggest decline in car production since records began, as manufacturers were unable to reverse closures planned to coincide with Britain’s expected departure from the EU.
Britain’s economy overall contracted by 0.4% in April after a 0.1% decline in March, the Office for National Statistics said on Monday, the biggest drop since March 2016 and a larger fall than any economist had forecast in a Reuters poll last week. Problems went beyond the drop in car production, NIESR economist Garry Young said: “Brexit-related uncertainty at home and trade tensions abroad dragging on investment spending and economic growth.”
FILE PHOTO: A Peugeot car is seen in the car park of the Vauxhall car plant in Ellesmere Port, Britain, January 10, 2018. REUTERS/Phil Noble May’s Purchasing Managers’ Index surveys pointed to the economy being close to stagnation, although they were similarly gloomy in the first quarter when official data turned out strong despite business concerns about Brexit.
This stance contrasts with the view in markets, where concern about the trade conflict between the United States and China has intensified, alongside the risk that Britain could still face a disruptive departure from the EU on Oct. 31.
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