What's going on?

New data released on Monday showed the UK economy grew at its slowest rate in almost a decade last quarter. And making matters worse, credit rating agencies think the country�s hanging off a cliff edge.

What does this mean?

Economists were hoping the UK economy would grow 1.1% � but that proved too optimistic as it only grew 1% compared to last year. Slowing business investment was largely to blame: a weakening global economy and persistent uncertainty over Brexit discouraged businesses� spending. That�ll have knock-on effects on Britain�s trading partners like Europe and the US, where exporters like Caterpillar, which sells machinery to British companies, already reported shrinking third-quarter sales.


Last week, credit rating agency Moody�s lowered its outlook on the UK�s debt to �negative�. It thinks the UK�s divided society might have permanently made the country unpredictable � and therefore risky.�

Why should I care?

For markets: Stampede!

Rival credit rating agencies Fitch and Standard & Poor�s had already announced negative outlooks on the UK � typically a precursor to cutting the UK�s debt rating and thereby declaring its government bonds a riskier investment proposition. A further cut (in the event of a no-deal Brexit, for example) could force certain investors who aren�t allowed to invest in too-risky bonds to sell their holdings, driving British bond prices down. If they instead buy more highly-rated US or Geman government bonds, demand may push their prices up.


Zooming in: Greggs� grub.
Although businesses are cutting their spending in the UK, consumers aren�t: bakery chain Greggs increased its annual profit forecast yet again on Monday. The success of its vegan sausage rolls has been partly to thank � no wonder, then, that fast-food giants McDonald�s and Burger King are now rolling out similar faux-meat products.