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David Milliken

UK workers get biggest pay rise in a decade

Dec 11 2018

LONDON British workers received their biggest pay rise in a decade in the three months to October as the country's strong labor market showed no sign of weakening ahead of Brexit, official figures showed on Tuesday.

UK economy slows in three months to October, Brexit uncertainty looms

Dec 10 2018

LONDON Britain's economy lost speed in the three months to October, reflecting lower car sales and factory stoppages due to weaker demand that business groups blamed on uncertainty about Brexit.

UPDATE 1-UK economy slows in three months to October, Brexit uncertainty looms

Dec 10 2018

* UK GDP +0.4 pct 3m/3m in Oct vs Q3 +0.6 pct * Factory output falls by most on year since March 2016 * Q3 trade revisions point towards weaker GDP growth (Adds detail) By David Milliken and Andy Bruce LONDON, Dec 10 Britain's economy lost speed in the three months to October, reflecting lower car sales and factory stoppages due to weaker demand that business groups blamed on uncertainty about Brexit. Gross domestic product growth slowed to 0.4 percent, in line with a Reuters poll of economists, from a strong 0.6 percent in the third quarter of 2018. Monday's data confirmed that the economy's strength over the summer represented something of a blip, caused by a boost to consumer spending from an unusually warm summer. "The latest GDP data is further evidence that the drag effect of persistent Brexit uncertainty and the significant cost pressures faced by consumers and businesses is taking its toll on the UK economy," Suren Thiru, head of economics at the British Chambers of Commerce, said. Markets showed little reaction to the data, with their focus on whether Prime Minister Theresa May would go ahead with a parliament vote on her preferred Brexit deal due on Tuesday, which she looks likely to lose heavily. The Office for National Statistics also highlighted a jump in Britain's trade deficit for the three months to September compared with previous figures, raising the prospect that third-quarter growth relied more on the domestic economy than thought. More recent private-sector business surveys have suggested the economy is slowing sharply in the face of uncertainty about the terms on which Britain will leave the European Union. The surveys have shown that fourth-quarter economic growth could be as weak as 0.1 percent. If May loses Tuesday's vote, the options for Brexit range from Britain facing major customs barriers when it leaves the EU in March to fresh national elections or a second referendum on leaving the EU. Monday's data do not give updated details of business investment, which fell sharply in the three months to September. Britain's economy has slowed since the June 2016 Brexit vote, its annual growth rate slipping from top spot among the Group of Seven group of rich nations to vying with Japan and Italy for bottom place in the rankings. The slower GDP growth in Monday's data reflected a hit to the services sector from lower car sales, volatile pharmaceuticals production and reports of factory stoppages due to a lack of demand. Year-on-year economic growth in October held at September's 1.5 percent, against expectations of a slight pick-up, while in October alone GDP rose by 0.1 percent as expected Factory output recorded its largest fall since March 2016, down 1.0 percent on the year. Britain's goods trade deficit in October was bigger than expected at 11.8 billion pounds ($15.0 billion), and its total deficit for goods and services for the three months to September was revised up to 9.8 billion pounds from 2.9 billion pounds. The ONS said this revision was likely to erase the 0.8 percentage point positive contribution which net trade would have made to third-quarter GDP growth. The initial estimate of GDP was made primarily by looking at output components of GDP, so the revision did not necessarily imply revised growth would be weaker but did suggest trade played less of a role. Revised GDP data are due on Dec. 21. ($1 = 0.7857 pounds) (Editing by Matthew Mpoke Bigg)

You wanted it, you got it: Carney defends BoE Brexit report

Dec 04 2018

LONDON Bank of England Governor Mark Carney hit back at critics of the central bank's warnings of a potentially big Brexit hit to the economy, denying allegations of scare-mongering made by some lawmakers who oppose Prime Minister Theresa May's plans. | Video

UK house price growth edges off five-year low - Nationwide

Nov 30 2018

LONDON British house price growth picked up slightly this month from October's five-year low, but the future outlook remains depressed by an uncertain economy and a squeeze on household budgets, major mortgage lender Nationwide said on Friday.

UPDATE 1-UK house price growth edges off 5-year low - Nationwide

Nov 30 2018

LONDON, Nov 30 British house price growth picked up slightly this month from October's five-year low, but the future outlook remains depressed by an uncertain economy and a squeeze on household budgets, major mortgage lender Nationwide said on Friday.

Extreme Brexit could be worse than financial crisis for UK - BoE

Nov 28 2018

LONDON Britain risks suffering an even bigger hit to its economy than during the global financial crisis 10 years ago if it leaves the European Union in a worst-case Brexit scenario in four months' time, the Bank of England said on Wednesday. | Video

British banks withstand disorderly Brexit in Bank of England test

Nov 28 2018

LONDON All seven British banks and building societies in this year's Bank of England stress test passed, indicating they could withstand a disorderly Brexit without having to curb lending.

Worst-case Brexit more painful than global financial crisis, Bank of England warns

Nov 28 2018

LONDON Britain risks a bigger hit to its economy than during the global financial crisis a decade ago if it leaves the European Union in a "disorderly" manner in March next year, the Bank of England warned on Wednesday.

Hammond says no-deal Brexit would cost tens of billions

Nov 21 2018

LONDON Leaving the European Union without a transition deal would cost Britain tens of billions of pounds, and failure to support Prime Minister Theresa May's preferred plan could jeopardise Brexit altogether, Chancellor Philip Hammond said on Wednesday.

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