UK economy declined in November on weak manufacturing sector

The Office for National Statistics said monthly gross domestic product declined 0.3 per cent in November, after growth in the previous two months.

Economists had predicted that the economy would remain flat with zero growth for the month.

Meanwhile, the ONS said the economy grew by 0.1 per cent over the latest three-month period - between September and October - as the economy performed better in September and October than previously estimated.

The three-month figure represented an improvement on analyst predictions, having forecast a decline of 0.1 per cent.

The latest data comes as new forecasts from the National Institute of Economic and Social Research predict the economy will have flat-lined with zero growth for the last quarter of 2019.

NIESR said it tentatively forecasts growth will return in the first quarter of 2020, predicting 0.3 per cent growth driven by improving figures for the service and construction sectors.

Rob Kent-Smith, head of GDP at the ONS, said: "Overall, the economy grew slightly in the latest three months, with growth in construction pulled back by weakening services and another lacklustre performance from manufacturing.

"The UK economy grew slightly more strongly in September and October than was previously estimated, with later data painting a healthier picture.

"Long term, the economy continues to slow, with growth in the economy compared to the same time last year at its lowest since the spring of 2012."

GDP decline in November was heavily driven by continuing troubles in the manufacturing sector, which saw output fall 1.7 per cent during the month, according to the new figures.

The services sector also reported a decline, although notably more modest, at 0.3 per cent for the month.

However, construction output returned to strong growth, with output increasing by 1.9 per cent during November after 2.2 per cent decline was reported a month earlier.