Growth in the UK economy has slowed in the three months to October, falling to 0.4% from the 0.6% in the three months to September.
The Office for National Statistics (ONS) revealed the slowed growth as car sales fell amid Brexit uncertainty.
Rob Kent-Smith, head of national accounts at the ONS, said: “GDP growth slowed going into the autumn after a strong summer, with a softening in services sector growth mainly due to a fall in car sales.”
“This was offset by a strong showing from IT and accountancy.”
“Manufacturing saw no growth at all in the latest three months, mainly due to a decline in the often-erratic pharmaceutical industry.”
“Construction, while slowing slightly, continued its recent solid performance with growth in housebuilding and infrastructure,” he added.
The dip in car sales reflects the worst period for car sales since the financial crisis.
The monthly GDP growth rate picked up from no growth in September to 0.1% in October. Manufacturing growth fell 0.9%. Output in the construction industry fell 0.2%.
October also saw the trade deficit increase to £3.1 billion.
The figures “come on the heels of more up-to-date survey evidence which suggests the economy is approaching stall speed and could even contract as we move into 2019 unless demand revives,” said Chris Williamson, the chief business economist at IHS Markit.
“The outlook for growth… very much depends on Brexit developments over the coming days, weeks and months, and the surrounding uncertainty makes forecasting extremely difficult.”
“However, what’s clearly evident is that the widely-expected slowing of the economy in the lead-up to the UK’s separation from the EU is now upon us, leaving the big question of whether the economy will bounce back alongside a smooth Brexit process or slide into decline,” he added.
