UK economy stalls ahead of the general election with no GDP increase for THREE months amid uncertainty over Brexit and fears of a Corbyn government
- UK economy failed to expand in October, after two months of contraction
- All three came ahead of missed October 31 Brexit deadline, indicating an impact
- ONS figures likely to be interpreted by PM as proof of need to complete Brexit
The paralysing effect of Brexit uncertainty on businesses was laid bare today as new figures revealed the economy stalling in the lead up to the general election.
The UK economy failed to expand in October as official figures from the Office for National Statistics (ONS) revealed zero month-on-month growth.
That followed two months of economic contraction, with all three coming ahead of the missed Brexit deadline of October 31, which Boris Johnson was forced to scrap.
The figures this morning are likely to be interpreted by the Prime Minister as proof the country needs to complete Brexit to boost the nation and avoid the impact of a Labour government determined to carry out a swathe of nationalisations.
But it is also likely to be seized upon by opponents to point at his handling of the economy so far.
An ONS spokesman said: ‘The UK economy saw no growth in the latest three months.
‘There were increases across the services sector, offset by falls in manufacturing with factories continuing the weak performance seen since April.
‘Construction also declined across the last three months with a notable drop in housebuilding and infrastructure in October.’
The data showed an improvement on the decline in gross domestic product (GDP) seen in August and September, when it fell by 0.2 per cent and 0.1 per cent respectively.
But growth also stagnated on a rolling three-month basis in October, which is seen as being less volatile than the monthly data.
By October it was already clear that a general election was on the cards as no other way of breaking the Brexit deadlock was apparent.
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