After Car Plant Collapsing, UK Economy Curtailed - TNBC UK

The UK Financial contract by 0.4% in April, after a “ dramatic fall ” in car manufacturing, the office for National Statistics claimed.

Car plants posses by the likes of Jaguar Land Rover and Honda temporarily suspended production in April, to pacify any disruption to their supply chains as Britain prepared for leaving the European Union.

JLR closed all three UK manufacturing plants and its engineering plant between 8-12 April, for the second time in six months.

Last July the company warned its Uk plants and at least 40,000 jobs were at risk if the country left the European Union without a free trade deal.

Honda suspended manufacturing for six days in the same month and plans to close its Swindon plant altogether by 2022, with 3,500 UK jobs at risk.

The ONS evaluation emerges after the Motor Manufacturing Society and Traders released “dismal” figures presenting the number of cars made in the UK fell by almost half in April, differentiated with a year ago in the successive months of refusal.

The leader of ONS, Rob Kent said, “ GDP growth showed some weakening across the latest three months with the economy shrinking in the month of April mainly due to a dramatic fall in car production with uncertainty ahead of the UK’s original EU departure date leading to planned shutdowns”.

He also added, “there was also widespread weakness across manufacturing in April, as the boost from the early completion of orders ahead of the UK’s original EU departure date has faded. ”

In April 0.4% shrinking in Uk compares to a 0.1% refusal in the gross domestic product in March.

Over the three months to April, GDP  was up to 0.3 % compared to the 0.5% rise in the first quarter.

The pound plunged 0.3% to $1.269 and fell 0.8% against the Euro at €1.123 after figures were released.

Related Articles