CAR PRODUCTION Fall in car production hits UK growth

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A “dramatic” fall in car production and an easing of stockpiling by manufacturers meant the economy shrank in April, official figures show.

The economy shrank 0.4% compared with the month before, according to the Office for National Statistics (ONS).

The contraction meant growth for the three months to April slowed to 0.3%.

Factory shutdowns designed to cope with disruption from a March Brexit, slashed UK car production in April by nearly half, the industry said last month.

The economy had seen a spurt of growth in the run-up to the proposed March date for the UK leaving the European Union, as manufacturers stockpiled parts, raw materials and goods in the anticipation of holdups at the border.

After the Brexit deadline was extended to October, it suffered the reverse effects as these supply reserves were used up and fewer purchases were made.

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