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| UK economy up 0.5% since Brexit vote; Nissan to build new car in Sunderland – business live | |
| (35 minutes later) | |
| 11.14am BST | |
| 11:14 | |
| Nissan: We're sticking with Sunderland following May's Brexit pledge | |
| It’s official! The next Qashqai will indeed be build in Sunderland, despite the uncertainty over Britain’s future. | |
| Nissan is also pledging to build its next 4x4 X-Trail vehicle there too. | |
| And the company also confirms that Theresa May’s government has given a ‘commitment’ that the plant’s competitiveness won’t be damaged by Brexit. | |
| Here’s the official statement: | |
| Nissan Motor Company Ltd. today announced, following its Executive Committee meeting, that it will produce the next Qashqai and will add production of the next X-Trail model at its Sunderland, U.K. Plant. | |
| Nissan’s decision follows the U.K. government’s commitment to ensure that the Sunderland plant remains competitive. As a result, Nissan will increase its investment in Sunderland, securing and sustaining the jobs of more than 7,000 workers at the plant. | |
| “I am pleased to announce that Nissan will continue to invest in Sunderland. Our employees there continue to make the plant a globally competitive powerhouse, producing high-quality, high-value products every day,” said Carlos Ghosn, Chairman and CEO of Nissan. | |
| “The support and assurances of the U.K. government enabled us to decide that the next-generation Qashqai and X-Trail will be produced at Sunderland. I welcome British Prime Minister Theresa May’s commitment to the automotive industry in Britain and to the development of an overall industrial strategy.” | |
| Nissan’s Sunderland plant opened in 1986 and has produced almost 9 million cars since. One in three British cars are produced in Sunderland, which is the UK’s largest car plant of all time. In addition, 80% of production from Sunderland is exported to over 130 international markets. More than 2 million Qashqai’s have been built in Sunderland in less than 10 years. In addition to the 7,000 direct employees at Sunderland, the plant supports a further 28,000 British automotive supply chain jobs. To date, Nissan has invested more than £3.7 billion in Sunderland. | |
| 11.08am BST | |
| 11:08 | |
| Sunderland voted decisively to leave the EU back in June, by 61% to 39%. | |
| So Brexit voters may feel vindicated by Nissan’s decision not to move Qashqai production abroad. | |
| Paul Brand of ITV tweets: | |
| When I reported from Sunderland during #EUref some Nissan workers were even voting Brexit, insisting their company was scaremongering 1/2 | |
| But big test won't be this next model of Qashqai. With Brexit still over 2 years away, it's whether Nissan will build future models too. 2/2 | |
| 11.03am BST | |
| 11:03 | |
| Downing Street will be very pleased by Nissan’s move, says City AM editor Christian May. | |
| Sigh of relief in No 10 as Nissan announces it will manufacture its new Qashqai model in Brexit-backing Sunderland... | |
| 10.54am BST | |
| 10:54 | |
| Has Nissan managed to get the UK government to promise compensation, if the EU imposes tax barriers on car imports after Brexit? | |
| CEO Carlos Ghosn was pretty clear that he wanted protection from any new tariffs, once Britain leaves the European Union. | |
| After meeting Theresa May on October 14, Ghosn said: | |
| If there are tax barriers being established on cars, you have to have a commitment for car-makers who export to Europe that there is some kind of compensation. | |
| Sounds like Nissan has won guarantee of some form of compensation if it ends up paying tariffs on EU trade. https://t.co/Xt62WbWOe5 | |
| 10.47am BST | |
| 10:47 | |
| The BBC’s Simon Jack says that Nissan has received “support and assurances” from Theresa May’s government, encouraging it to build the new Qashqai in Sunderland. | |
| Nissan conform Qashqai and X-Trail (new) will be built at Sunderland securing 7,000 jobs after "support and assurances" from UK government | |
| The FT’s Peter Campbell predicts an official announcement soon: | |
| BREAKING - Nissan will build both the Qashqai and the X-Trail in Sunderland, the company will announce later this morning. #brexit | |
| 10.44am BST | |
| 10:44 | |
| Reuters: Nissan to build next Qashqai in Sunderland | |
| Reuters are reporting that Nissan, the Japanese carmaker, has decided that it will build its next Qashqai SUV in Sunderland. | |
| That would be a significant boost for the region, and one of the first major investment decisions since June. | |
| The Nissan plant at Sunderland employs around 7,000 people, and is Britain’s biggest car factory. | |
| Reuters: Source at Nissan says the car manufacturer will build its next Qashqai SUV model in Sunderland | |
| Last week Nissan’s chief executive Carlos Ghosn met prime minister Theresa May, and warned that his company could stop investing at Sunderland unless it was protected from any adverse impact from the Brexit vote. | |
| We’ve called Nissan for comment..... | |
| Updated | |
| at 10.44am BST | |
| 10.28am BST | 10.28am BST |
| 10:28 | 10:28 |
| Today’s growth report shows that the “Brexit bogeyman” hasn’t yet been as scary as initially feared, says Nancy Curtin, Chief Investment Officer at Close Brothers Asset Management. | Today’s growth report shows that the “Brexit bogeyman” hasn’t yet been as scary as initially feared, says Nancy Curtin, Chief Investment Officer at Close Brothers Asset Management. |
| She writes: | She writes: |
| Any lingering concerns over an immediate collapse in growth in 2016 have been officially put to bed, with output continuing to grow in the first major assessment of domestic activity post-referendum. Supportive monetary policy has played a part, while the softer pound has kept factory orders ticking along. These, along with robust consumption, will be key levers of growth. | Any lingering concerns over an immediate collapse in growth in 2016 have been officially put to bed, with output continuing to grow in the first major assessment of domestic activity post-referendum. Supportive monetary policy has played a part, while the softer pound has kept factory orders ticking along. These, along with robust consumption, will be key levers of growth. |
| But Curtin also predicts a slowdown next year: | But Curtin also predicts a slowdown next year: |
| The quarter on quarter slowdown in the growth rate suggests Brexit uncertainty is having some bite, and it’s likely the ambiguity around the UK’s exit from the EU will take some of the steam out of the long-term growth rate, with anaemic growth likely to become status quo while Article 50 negotiations rumble on. | The quarter on quarter slowdown in the growth rate suggests Brexit uncertainty is having some bite, and it’s likely the ambiguity around the UK’s exit from the EU will take some of the steam out of the long-term growth rate, with anaemic growth likely to become status quo while Article 50 negotiations rumble on. |
| 10.22am BST | 10.22am BST |
| 10:22 | 10:22 |
| Anyone know why 'motion picture, video and TV programming' saved the day for GDP? Are we filming more post-Brexit...? pic.twitter.com/QQSKEkr3xc | Anyone know why 'motion picture, video and TV programming' saved the day for GDP? Are we filming more post-Brexit...? pic.twitter.com/QQSKEkr3xc |
| 10.21am BST | 10.21am BST |
| 10:21 | 10:21 |
| GDP: Some more detail | GDP: Some more detail |
| I’ve quickly truffled through today’s GDP report to get some colour on how the UK economy performed | I’ve quickly truffled through today’s GDP report to get some colour on how the UK economy performed |
| 1) Services: The only sector to grow, by a punchy 0.8%. All four sub-sectors expanded (that’s distribution, hotels and restaurants; transport, storage and communication; business services and finance; and government and other services). | 1) Services: The only sector to grow, by a punchy 0.8%. All four sub-sectors expanded (that’s distribution, hotels and restaurants; transport, storage and communication; business services and finance; and government and other services). |
| Growth was particularly strong in the “motion picture, video and TV programme production, sound recording and music publishing activities, and computer programming industries”, apparent.y | Growth was particularly strong in the “motion picture, video and TV programme production, sound recording and music publishing activities, and computer programming industries”, apparent.y |
| 2) Industrial production: It suffered a 0.4% contraction. That’s mainly because manufacturing output shrank by a whole 1%. Energy supply fell by 3.6%, water and waste management dropped by 0.2%, while mining and quarrying increased by 5.2% | 2) Industrial production: It suffered a 0.4% contraction. That’s mainly because manufacturing output shrank by a whole 1%. Energy supply fell by 3.6%, water and waste management dropped by 0.2%, while mining and quarrying increased by 5.2% |
| 3) Construction: Output fell by 1.4%, which is the biggest decline since 2012. That’s partly because construction of new housing fell, for the first time in a year. | 3) Construction: Output fell by 1.4%, which is the biggest decline since 2012. That’s partly because construction of new housing fell, for the first time in a year. |
| 4) Agriculture: | 4) Agriculture: |
| 10.17am BST | 10.17am BST |
| 10:17 | 10:17 |
| Philip Hammond has also told the BBC that the UK economy is looking strong, as the EU exit talks loom: | Philip Hammond has also told the BBC that the UK economy is looking strong, as the EU exit talks loom: |
| Chancellor @PHammondMP tells @andyverity that GDP figures show UK economy in a position of strength ahead of EU negotiations pic.twitter.com/YPHH3nBtBI | Chancellor @PHammondMP tells @andyverity that GDP figures show UK economy in a position of strength ahead of EU negotiations pic.twitter.com/YPHH3nBtBI |
| 10.06am BST | 10.06am BST |
| 10:06 | 10:06 |
| TUC: No room for complacency | TUC: No room for complacency |
| TUC general secretary Frances O’Grady says the government needs to do more to help UK manufacturing (which contracted by 1% after the Brexit vote): | TUC general secretary Frances O’Grady says the government needs to do more to help UK manufacturing (which contracted by 1% after the Brexit vote): |
| “We can’t yet say what impact Brexit will have on our economy, but these figures show there’s no room for complacency. British manufacturing is still struggling, and now faces real uncertainty following the vote to leave the EU. | “We can’t yet say what impact Brexit will have on our economy, but these figures show there’s no room for complacency. British manufacturing is still struggling, and now faces real uncertainty following the vote to leave the EU. |
| “The government must use next month’s Autumn Statement to boost Britain’s jobs and wages. This means investing in infrastructure like roads, rail and homes, and raising the national minimum wage.” | “The government must use next month’s Autumn Statement to boost Britain’s jobs and wages. This means investing in infrastructure like roads, rail and homes, and raising the national minimum wage.” |
| 10.01am BST | 10.01am BST |
| 10:01 | 10:01 |
| Economists: Brexit vote impact will be felt in 2017 | Economists: Brexit vote impact will be felt in 2017 |
| Today’s GDP report is an important measure of the health of Britain’s economy after June’s historic referendum. | Today’s GDP report is an important measure of the health of Britain’s economy after June’s historic referendum. |
| But several economists say the real test of the Brexit vote will come in 2017, not today. | But several economists say the real test of the Brexit vote will come in 2017, not today. |
| Here’s PwC’s Andrew Sentance: | Here’s PwC’s Andrew Sentance: |
| UK #GDP was resilient in Q3, led by services. But impact of #Brexit decision on investment still likely to dampen growth next year. | UK #GDP was resilient in Q3, led by services. But impact of #Brexit decision on investment still likely to dampen growth next year. |
| Geoffrey Yu, head of UK Investment Office at UBS Wealth Management, predicts that growth will keep slowing: | Geoffrey Yu, head of UK Investment Office at UBS Wealth Management, predicts that growth will keep slowing: |
| Anecdotal evidence supports the view that we’re yet to see any meaningful damage as a result of the Brexit vote, at least in the short-term. | Anecdotal evidence supports the view that we’re yet to see any meaningful damage as a result of the Brexit vote, at least in the short-term. |
| “Of course, we should not overlook the lingering sense of uncertainty. Though the economy has fared better than initially feared, we expect that economic growth will slow down relative to the early part of this year. | “Of course, we should not overlook the lingering sense of uncertainty. Though the economy has fared better than initially feared, we expect that economic growth will slow down relative to the early part of this year. |
| Jeremy Cook, chief economist at the international payments company World First, says we’ll have a better picture once Theresa May has triggered article 50: | Jeremy Cook, chief economist at the international payments company World First, says we’ll have a better picture once Theresa May has triggered article 50: |
| “We have called the UK consumer a hardy beast in the past and in Q3 the beast was back. The services sector singlehandedly drove growth to a 15th consecutive positive quarter and while the ‘little evidence of a pronounced effect’ from the Brexit vote is being seen yet, we think that it will be as gradually obvious as the year comes to an end. The beast will tire as inflation fires arrows at its increasingly weakening hide.” | “We have called the UK consumer a hardy beast in the past and in Q3 the beast was back. The services sector singlehandedly drove growth to a 15th consecutive positive quarter and while the ‘little evidence of a pronounced effect’ from the Brexit vote is being seen yet, we think that it will be as gradually obvious as the year comes to an end. The beast will tire as inflation fires arrows at its increasingly weakening hide.” |
| Updated | Updated |
| at 10.08am BST | at 10.08am BST |
| 9.57am BST | 9.57am BST |
| 09:57 | 09:57 |
| Thomas Laskey of Aberdeen Asset Management argues that the Bank of England should get some credit for today’s growth report: | Thomas Laskey of Aberdeen Asset Management argues that the Bank of England should get some credit for today’s growth report: |
| “The data shows that the UK economy fared well in the aftermath of the EU referendum. It confirms what most investors thought: that sentiment bounced back after the initial shock of the result. Growth was fairly strong, at least in part because the Bank of England restarted its bond buying programme and the fact that changes to investment plans take time to play out. | “The data shows that the UK economy fared well in the aftermath of the EU referendum. It confirms what most investors thought: that sentiment bounced back after the initial shock of the result. Growth was fairly strong, at least in part because the Bank of England restarted its bond buying programme and the fact that changes to investment plans take time to play out. |
| But he predicts slower growth next year: | But he predicts slower growth next year: |
| “The outlooks for growth is pretty uncertain. Brexit has the potential to be extremely costly to the UK and the country could be poorer as a result. We’ve already seen this reflected in sterling’s dramatic drop. Growth will probably slow as import costs increase and people’s incomes fall as inflation rises. We are not out of the woods yet by any means.” | “The outlooks for growth is pretty uncertain. Brexit has the potential to be extremely costly to the UK and the country could be poorer as a result. We’ve already seen this reflected in sterling’s dramatic drop. Growth will probably slow as import costs increase and people’s incomes fall as inflation rises. We are not out of the woods yet by any means.” |
| Updated | Updated |
| at 9.58am BST | at 9.58am BST |
| 9.51am BST | 9.51am BST |
| 09:51 | 09:51 |
| You can see the GDP report online, here: | You can see the GDP report online, here: |
| Gross Domestic Product, preliminary estimate: July to Sept 2016 | Gross Domestic Product, preliminary estimate: July to Sept 2016 |
| 9.50am BST | 9.50am BST |
| 09:50 | 09:50 |
| Hammond hails GDP report | Hammond hails GDP report |
| Chancellor Philip Hammond says today’s report shows that the UK economy is resilient, and ‘well-placed’ to deal with the challenges and opportunities created by the EU referendum. | Chancellor Philip Hammond says today’s report shows that the UK economy is resilient, and ‘well-placed’ to deal with the challenges and opportunities created by the EU referendum. |
| We are moving into a period of negotiations with the EU and we are determined to get the very best deal for households and businesses. The economy will need to adjust to a new relationship with the EU, but we are well-placed to deal with the challenges and take advantage of opportunities ahead.” | We are moving into a period of negotiations with the EU and we are determined to get the very best deal for households and businesses. The economy will need to adjust to a new relationship with the EU, but we are well-placed to deal with the challenges and take advantage of opportunities ahead.” |
| Here's my response to today's @ONS GDP figures. pic.twitter.com/GGdt0UCFkr | Here's my response to today's @ONS GDP figures. pic.twitter.com/GGdt0UCFkr |
| Updated | Updated |
| at 9.53am BST | at 9.53am BST |
| 9.49am BST | 9.49am BST |
| 09:49 | 09:49 |
| Anyone remember George Osborne’s plan to rebalance the economy and create a March of the Makers? | Anyone remember George Osborne’s plan to rebalance the economy and create a March of the Makers? |
| Five year’s later, Britain is as dependent on service sector growth as ever: | Five year’s later, Britain is as dependent on service sector growth as ever: |
| So much for rebalancing. UK Q3 GDP growth entirely driven by services sector. Everything else (manufacturing, construction etc) shrinking pic.twitter.com/Cnr1D2Rrj6 | So much for rebalancing. UK Q3 GDP growth entirely driven by services sector. Everything else (manufacturing, construction etc) shrinking pic.twitter.com/Cnr1D2Rrj6 |
| 9.43am BST | 9.43am BST |
| 09:43 | 09:43 |
| Britain’s economy has now grown for 15 quarters in a row, and is 8.2% higher than the pre-economic downturn peak in early 2008. | Britain’s economy has now grown for 15 quarters in a row, and is 8.2% higher than the pre-economic downturn peak in early 2008. |