UK gross domestic product (GDP) was flat (Quarter on Quarter compared to Q3 2019) in volume terms was flat in Q4 (October to December) 2019. Compared to Q4 2019 (same quarter a year ago), UK GDP increased by 1.1%.
UK GDP growth in 2019 was very volatile due to the constantly changing dates of Brexit (and associated business stockpiling). Household consumption growth rate fell significantly.
Economic growth rates in 2018 and 2019 have been the slowest since the financial crisis of 2008 and 2009.
Sectoral Growth – Services grows, production falls
Services output increased by 0.2% in Q4 2019. Production output fell by 0.7% in Q4 2019, driven by declines in manufacturing, and mining and quarrying. Construction output decreased by 0.1% in the fourth quarter.
Private Consumption falls
Government consumption and net trade contributed positively to growth in Q4, whilst private consumption is now estimated to have subtracted from growth. Gross capital formation also detracted from growth in Q4 2019, although there was some evidence of stockpiling taking place in Q4.
Household Consumption slows in 2019
Growth in household consumption slowed to 1.1% in 2019, with a notable easing in expenditure on household goods and services as well as miscellaneous items.