The British Economy has seen its weakest period of economic growth since 2012 in November.
Figures released on Monday morning showed the British people that the economy in November had grown a modest 0.6%, which was the weakest figure since June 2012.
This figure also represented a slowdown from the 1% annual growth figure in October, which has been hampered by both political and economic stresses.
Output in November fell by 0.3% which was the biggest drop since April, and certainly the pre-election caution had hit both consumers and investors.
In November, notable slumps came from British supermarkets and the Big Four saw their profits slump.
Sainsbury’s (LON:SBRY) saw their profits fall across the Christmas period.
n the 15 weeks to January 4, total retail sales, excluding fuel, were down 0.7% from last year. Including fuel, sales were down 0.9%, which has seemed to edge shareholders.
In the three months to November, the economy grew 0.1% which was a positive note to take however the future of British retail and the British high street has never looked so glum
On a more positive note, grocery sales rose 0.4% from a year ago with online grocery sales up 7.3% an area which the firm has looked to expand over the last few years.
Additionally, Morrisons (LON:MRW) have reported that their sales have fallen in their update dating to January 5.
The firm said that challenging trading conditions coupled with consumer uncertainty were the largest contributors to the slump in sales.
Morrison’s said that said like-for-like sales, excluding fuel, were down 1.7% year-on-year.
Additionally the decline was further
accelerated by a fall in retail sales, as a like for like performance in the wholesale unit remained flat.
Notably, fuel sales declined 2.8% year on year across the 22 weeks period, and total sales dipped 2.9% but the figure totaled 1.8% without fuel sale considerations.
The weak data, reflected the uncertainty of last autumn about Brexit and the election, said John Hawksworth, chief economist for accountants PwC.
“It is too early to say for sure if economic momentum will pick up in the new year now the political situation is clearer, but our latest survey of the financial services sector with the CBI does suggest some boost to optimism since the election,” he said.
The British public are still in a stalemate and do not know which direct Brexit negotiations are heading towards.
Indeed, the victory by the Conservatives has given British politics some clarity however the Boris Bounce has seemed to fade.
PM Johnson is planning to take his deal to the EU this week, and the deadline set at January 31 still could be pushed further back if the EU stipulate against terms of the exit deal.
