Britain's economy has stalled, official data showed Monday, as Brexit and political uncertainty contributed to slashing manufacturing output, heaping pressure on the Bank of England to cut interest rates.
Gross domestic product contracted 0.3 percent in November, the Office for National Statistics said in a statement. It grew only 0.1 percent in the three months to the end of November, the ONS added.
Manufacturing meanwhile slumped 1.7 percent in November. Speaking ahead of the data a Bank of England policymaker, Gertjan Vlieghe, hinted at a potential vote in favour of a January cut to the BoE's main interest rate, weighing on the pound Monday.
It followed comments Friday by fellow policymaker Silvana Tenreyro, who said she could support a rate cut from the current 0.75-percent level, if the economy did not strengthen.
And on Thursday, the bank's outgoing governor, Mark Carney, said the monetary policy committee was looking at the merits of near-term stimulus.
As for the latest GDP data, "a poor performance in November was always on the cards given that the uncertainties facing the economy were at a peak with the general election looming and doubts over what would happen on the Brexit front after it had been delayed again from 31 October", noted Howard Archer, chief economic advisor to financial researchers EY ITEM Club.
"It is clear that businesses were cautious in their behaviour while it also appears that consumers were reluctant to spend."