Growth in the UK's economy has slowed to its weakest pace in six months.
Office of National Statistics (ONS) stated how the economy has grown by 0.3% in the three months to November and less than 0.4% in the three months to October. Even going as far to say that manufacturers suffering their longest period of monthly falls in output since the financial crisis.
However, it was said that the economy grew by 0.2% in November, up from 0.1% the previous month.
UK Slowing Economic Growth
The month of month reports show, construction growth at 0.6% in November, manufacturing contracted at 0.3% while services activity rose 0.3%. Production as a whole contracted 0.4%.
The global economy itself is starting to feel growing pains, EU, US and China's data are showing slowing statistics. Is the US China trade dispute causing worldwide uncertainty? The knock-on effects have been devastating for some exporting countries, as well as the UK.
The ONS has stated that the UK economy is returning to the moderate growth rates after a volatile year.
Ben Brettell, senior economist at Hargreaves Lansdown, said:
"This marks the manufacturing sector's longest losing run since the 2008-09 recession."
"There are two factors at work here. The global economy looks to be stuttering, with the 'Chimerica' trade war rumbling on, and Chinese consumer spending on a downward trend."
"UK companies are also dealing with a significant Brexit headwind, with heightened levels of uncertainty putting business off investment and damaging consumer confidence."
What Forex traders need to look out for
Growing pains world wide have shown many major economies slowing down over the past few months. This can be seen in weakening currencies among the riskier currencies and appreciating currencies in the safe currencies such as the JPY.
If the current economic state continues with the trade war and brexit looms we can see this trend continue.
Look out for:
USD Strength vs Weak/ Risk currencies (However more volatile due to trade war)
Risk currencies weakening (AUD/NZD due to the falling demand for commodities in China)
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