The Pound exchange rate has been in a tight range against the US Dollar (GBP/USD) and Euro (GBP/EUR) on Friday morning, despite news that UK economic growth had hit a six-month low.
The UK registered a 0.3% increase in growth in the three months through November, slightly lower than the previous 0.4% reading. Economic growth was fuelled by the UK’s powerhouse service sector, but car production fell which caused a slowdown in British manufacturing.
UK Growth Drops – Pound Exchange Rate Holds Steady
Office for National Statistics representative Rob Kent-Smith commented:
‘Growth in the UK economy continued to slow in the three months to November 2018 after performing more strongly through the middle of the year. Accountancy and housebuilding again grew but a number of other areas were sluggish. Manufacturing saw a steep decline, with car production and the often-erratic pharmaceutical industry both performing poorly.’
Ford and Jaguar Land Rover Announce Job Cuts
Yesterday, news reached markets that Jaguar Land Rover would be axing jobs, leaving around 4,500 people across the world out of work after a slowdown in demand from China and numerous other global economic risks. The company hires around 40,000 people in the UK.
JLR Chief Executive Ralf Speth commented:
‘We are taking decisive action to help deliver long-term growth in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry.’
It wasn’t just Jaguar Land Rover announcing changes either, Ford announced it would also be cutting thousands of jobs. The company has a new strategy which should hopefully improve the performance of the business. Furthermore, Ford believes that a no-deal Brexit could cause it to make ‘more dramatic’ cutbacks.
Ford European Chief Steven Armstrong commented:
‘If we get the wrong result, then expect that results will be significantly more dramatic. This is fix the base business.’
The Pound to Euro (GBP/EUR) exchange rate is trading at 1.1078. The Pound to US Dollar (GBP/USD) exchange rate is trending in the region of 1.2763.