August 20, 2019
Latest News
European Union

UK economy shrank in April as Brexit hit car production

 The New Jaguar I-PACE is presented during the press day at the 88th Geneva International Motor Show in Geneva, Switzerland, Mar. 6, 2018. EPA-EFE/FILE/TCYRIL ZINGARO

The New Jaguar I-PACE is presented during the press day at the 88th Geneva International Motor Show in Geneva, Switzerland, Mar. 6, 2018. EPA-EFE/FILE/TCYRIL ZINGARO

London, Jun 10 (efe-epa).- The United Kingdom's economy shrank in April as car makers took the precaution of shuttering their factories in the weeks surrounding the original date for leaving the European Union, according to a Dow Jones Newswires report made available to EFE on Monday.

The figures suggest the economy slowed in the second quarter after a strong start to the year, as uncertainty over Brexit intensified.

Britain's withdrawal from the EU has twice been delayed amid political infighting over the terms of departure and is currently scheduled for Oct. 31.

The chance of an abrupt and messy split between Britain and the EU is just one of multiple risks facing the global economy. Concerns over the outlook have grown in recent weeks amid continuing tensions over trade and a slowdown in China. The United States Federal Reserve has signaled its next move may be to cut interest rates to support the US economy.

The UK economy shrank 0.4 percent in April compared with March, the Office for National Statistics said Monday, the largest monthly decline since March 2016.

The contraction was driven by the manufacturing sector. Car production plunged 24 percent on the month because major manufacturers shifted regular maintenance shutdowns to the period surrounding March 29, the original date for the UK's planned withdrawal from the EU.

The shutdowns were designed to guard against any disruption to production from an abrupt split.

In the event, the EU instead agreed to give UK Prime Minister Theresa May more time to try and win majority support for her withdrawal deal with Brussels.

May failed three times to get parliamentary backing for her plan and stood down as Conservative Party leader on Friday. She is due to be replaced as prime minister in the summer once the ruling Conservative Party picks her successor.

Manufacturing output in April was also affected by a decline in orders for British-made goods compared with the previous month, which had seen a boost in purchases as buyers built up precautionary stocks ahead of March 29. Factory output overall shrank 3.9 percent in April compared with March.

The economy grew 0.3 percent in the three months through April, the ONS said, an annualized rate of 1.1 percent. That compares with growth of 0.5 percent the previous three months.

dj/hh

News history

By Jesus Centeno

Vienna, Jun 28 (efe-epa).- Discrimination, racism, inequality, child poverty. The European Union is still the scene of serious violations of fundamental...

Design guru's exit marks Apple shift from products to services

By Tripp Mickle

Heatwave triggers vast wildfire in northeast Spain that engulfs 13,600 acres

Tarragona, Spain, Jun 27 (efe-epa).- A heatwave that has engulfed Western Europe in recent days has kindled the first serious wildfires in Spain this year...

From NY's Stonewall revolt to old age frailty, back to closet

By Jorge Fuentelsaz

US oil exports jump due to turmoil in Mideast

By Ryan Dezember

Stocks: Defense shares surge on spending

New York (USA), Jun 25 (efe-epa).- The United States may have held off on an airstrike against Iran in favor of sanctions, but US stock investors are...

Iran says new US sanctions end any chance of diplomacy

By Sune Engel Rasmussen in Beirut, Aresu Eqbali in Tehran and Dov Lieber in Jerusalem

Repairs to Harry and Meghan's new home cost UK taxpayers $2.8 million

Madrid, Jun 25 (efe-epa).- The official home that Queen Elizabeth II of the United Kingdom has given to the Duke and Duchess of Sussex was refurbished using...

3 Chinese banks deny being probed by US in relation to North Korea sanctions

Beijing, Jun 25 (efe-epa).- Three Chinese banks have denied that they were involved in any investigation related to possible violations of North Korea...

Revote in Istanbul rebukes Erdogan

By David Gauthier-Villars

Mercedes dominant in practice ahead of French F1 GP, finishing 1-2 twice

Paul Ricard Circuit (France), Jun 21 (efe-epa).- Mercedes put on a dominant performance in both free practice sessions at the Circuit Paul Ricard race track...

Apple explores shift away from China

By Yoko Kubota and Tripp Mickle

Real Madrid reinforces its defense with new signing Mendy

Madrid, Jun 19 (efe-epa).- Real Madrid reinforced its defensive lineup with the inclusion of France left-back Ferland Mendy who was presented to fans at the...

What to know about Libra cryptocurrency

New York (USA), Jun 19 (efe-epa).-Facebook just disclosed the first details of its long-anticipated cryptocurrency, called Libra, according to a Dow Jones...

Real Madrid unveils new forward Rodrygo: I hope to make Madrid fans happy

Madrid, Jun 18 (efe-epa).- Real Madrid unveiled the latest component of its new squad for the upcoming season, Brazilian forward Rodrygo, at its Santiago...

Former UEFA president Platini held over awarding 2022 FIFA World Cup to Qatar

Paris, Jun 18 (EFE).- Former UEFA president Michel Platini has been arrested on suspicion of corruption linked to a decision to award the 2022 World Cup to...

US says Israel not invited to Bahrain Conference

Washington, Jun 18 (efe-epa).- The White House said it won't invite the Israeli government to the unveiling of the economic part of its Israeli-Palestinian...

North Korea lobs insults at US but shields Trump

Seoul, Jun 17 (efe-epa).- A year after North Korean leader Kim Jong Un's historic first meeting with President Donald Trump, his government is once again...

China biotech companies poach US talent

Hong Kong (China) Jun 17 (efe-epa).- China-based biotechnology startups looking to go global are poaching talent from the biggest American pharmaceutical...

Toyota in pole at Le Mans with Kobayashi driving, Alonso, 2nd, dreams of win

Le Mans (France), Jun 14 (efe-epa).- The driver Kamui Kobayashi secured pole position in his Toyota TS050 ahead of 24 hours of Le Mans, leaving second-place...

HSBC boosts role as Saudi banker

By Rory Jones in Dubai and Margot Patrick in London

Nintendo shifts some production from China

By Takashi Mochizuki

Pepsi executive picked to lead UK's Reckitt

By Saabira Chaudhuri

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.