Good morning. UK economic growth stalled in October with gross domestic product (GDP) growing by a weaker-than-expected 0.1 per cent month on month, down from 0.6 per cent in September.
City economists had forecast 0.4 per cent month-on-month growth. In the three months to September GDP growth slowed to 0.9 per cent.
Paul Dales, chief UK economist at Capital Economics, said: “The disappointing 0.1 per cent rise in GDP in October suggests that the economy had slowed to a crawl even before the Omicron Covid-19 variant was discovered in late November. We estimate that the Plan B Covid-restrictions may reduce GDP by 0.0 to 0.5 per cent in December. That means it is touch-and-go whether the economy will grow or contract this month.”
We’ll have a full story shortly from Simon Duke on thetimes.co.uk/#section-business.
Alongside the GDP release we have had the latest trade deficit data, which showed a smaller-than-expected deficit of £13.9 billion.
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Later this morning (9.30am) we will get the latest Bank of England inflation attitudes survey, which comes before next week’s meeting of the monetary policy committee.
On the corporate front this morning:
▉ The FTSE 100 miner Anglo American has warned shareholders that it is still not able to set out a revised budget or timescale for the development of its Woodsmith fertiliser mine in the North York Moors National Park and will not be able to do so until the end of next year. Anglo had previously told shareholders that it would set out the costs of the project early next year. Chris Fraser, who had been overseeing the project for Anglo since the £405 million acquisition of Sirius Minerals, has been moved to a new role. We’ll have a full story shortly from Emily Gosden on thetimes.co.uk/#section-business.
▉ Updating shareholders before its annual general meeting later today Associated British Foods has reported that trading at Primark “has been ahead of expectations”. Trading across the group’s grocery, sugar, ingredients and agriculture businesses has been “in line with expectations”.
Finally, the bitter fight over the future of LV=, one of Britain’s biggest remaining mutual insurers, will finally be settled later today. LV=, formerly known as Liverpool Victoria, will hold a virtual meeting for its 1.2 million members to vote on its controversial £530 million sale to the American private equity firm Bain Capital. The mutual needs the backing of 75 per cent of those members who participate in the ballot for the takeover to proceed.
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Have a great weekend — I’m putting up the Christmas tree — I’ll be back in your inbox bright and early on Monday morning.
Richard