This article is more than 1 year old

This article is more than 1 year old

UK economic growth slowed in October as car sales went into reverse, while factory output stalled amid heightened uncertainty over Brexit.

According to the Office for National Statistics, GDP growth cooled to 0.4% during the three months to October from a rate of 0.6% in the three months to September, as the economy hit a softer patch in the autumn after a strong summer.

The latest health check for the economy revealed manufacturing growth was flat amid a decline in car production. Analysts said new emissions tests and nervousness among consumers to spend on expensive items in the run-up to Brexit were taking a toll on the industry.

In a sign of the continuing woes on the British high street and the worst period for car sales since the financial crisis, the retail and wholesale sector also recorded a drop in growth of 0.02%.

Economists said the slower rate of growth reflected growing uncertainty over Brexit, as Theresa May struggled to win approval for her EU withdrawal plan before a vote in parliament this week.

In a sign of lingering weakness, the monthly GDP growth rate picked up only slightly, to 0.1% in October, from zero growth in September. Manufacturing growth fell into a steep decline of 0.9% and the construction sector also slowed.

The latest figures confirmed the economy had faltered in recent months after a bumper summer, when hot weather and the World Cup led to a jump in retail sales.

John Hawksworth, the chief economist at PwC, said: “Until [Brexit] is resolved, the UK economy is likely to remain in the doldrums as businesses will be reluctant to invest and households may also be reluctant to commit to big-ticket items like house and car purchases.”

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Britain’s trade deficit in goods and services, the gap between the total value of exports and imports, widened by £3.1bn in the three months to October to £10.3bn in another worrying sign for the economy.

The goods deficit increased by £1.7bn as imports rose faster than exports, while the UK’s usual surplus in services shrank by £1.3bn.

Suren Thiru, the head of economics at the British Chambers of Commerce, said: “Trading conditions for UK exporters are deteriorating amid moderating global growth and uncertainty over Brexit.”