While output in November was up slightly on October, the more important quarterly growth rate shows an economy that is cooling just as the political environment is starting to heat up. Ayan Mitra, CEO – CODE Investing
The weakest quarterly output for six months is precisely the GDP data the country didn’t want to see. Such anaemic growth weakens the UK’s hand as we enter the sharp end of Brexit. What’s most worrying is the weakness in the production sector, with manufacturing a particular cause for concern.
With the UK potentially on the cusp of going it alone, as a country we need to be producing but that critical area of the economy is contracting.
On a more upbeat note, the abundance of non-bank lenders means businesses that need it can still secure finance on competitive terms.
There could be a major political crunch in 2019 but we are highly unlikely to see a credit crunch given the vast array of funding options now available.
The absence of a credit crunch could be the one thing that keeps the UK economy afloat as we navigate the difficult months ahead.”