LONDON: Britain’s economy grew at its weakest pace in half a year in the three months to November as factories suffered from tough global trade conditions and the approach of Brexit, official data showed on Friday.
Gross domestic product was 0.3 percent higher than in the previous three-month period, down from growth of 0.4 percent in the three months to October and matching the consensus of a Reuters poll of economists.
Manufacturers suffered their longest period of monthly declines in output since the financial crisis, hurt by weaker overseas demand, the Office for National Statistics said.
Looking at November alone, industrial output dropped 1.5 percent on the year — the biggest fall since August 2013.
Worries about the global economy have been mounting due to concerns about a trade war between the United States and China.
Figures from Germany and France earlier this week also showed falling industrial output.
“There may well be a common theme which is hurting the factory sector throughout Europe, for example changes in the auto industry,” Investec chief economist Philip Shaw said, adding that Brexit worries were also weighing on investment.
Carmakers across Europe have suffered from a fall in demand for diesel vehicles due to pollution concerns.
Sterling and British government bonds were little changed by Friday’s figures.
The figures fit with business and consumer surveys that suggest the economy is slowing sharply after robust growth of 0.6 percent in the third quarter of the year, reflecting growing uncertainty ahead of Brexit, as well as global jitters.
Britain is due to leave the EU on March 29 and whether businesses will still be able to trade without disruption to cross-border supply chains remains unclear.
Prime Minister Theresa May risks losing a parliamentary vote on Tuesday on the deal she has agreed with the EU.
Defeat would leave open the prospect of Britain leaving the EU without any transitional arrangements to smooth the economic shock.
Compared with a year earlier, Britain’s economy was 1.4 percent larger. In November alone, it expanded 0.2 percent, compared with forecasts for a rise of 0.1 percent.
The Bank of England says the economy is likely to have grown around 0.2 percent over the fourth quarter of 2018.
Closely watched purchasing managers’ surveys have pointed to fourth-quarter growth of around 0.1 percent in Britain, according to data firm IHS Markit which compiles the surveys.
Britain’s economy slowed after the June 2016 Brexit vote, its growth rate slipping from top spot among the Group of Seven group of rich nations to mid-table or lower.
An unusually warm summer and the soccer World Cup spurred a pick-up in mid-2018 but retail sales data suggest consumers reined in spending late last year.
Britain’s services sector grew by 0.3 percent over the three months to November, while industrial output dropped by 0.8 percent, the biggest decline since May 2017.
Separate figures showed Britain’s goods trade deficit widened unexpectedly in November to £12 billion ($15.3 billion) from £11.9 billion, worsened by the highest oil imports since September 2014.
UK economy slows as global worries, Brexit weighs on factories
UK economy slows as global worries, Brexit weighs on factories
- Gross domestic product was 0.3 percent higher than in the previous three-month period
- Prime Minister Theresa May risks losing a parliamentary vote on Tuesday on the deal she has agreed with the EU
PIF’s Humain invests $3bn in Elon Musk’s xAI prior to SpaceX acquisition
JEDDAH: Humain, an artificial intelligence company owned by Saudi Arabia’s Public Investment Fund, invested $3 billion in Elon Musk’s xAI shortly before the startup was acquired by SpaceX.
As part of xAI’s Series E round, Humain acquired a significant minority stake in the company, which was subsequently converted into shares of SpaceX, according to a press release.
The transaction reflects PIF’s broader push to position Saudi Arabia as a central hub in the global AI ecosystem, as part of its Vision 2030 diversification strategy.
Through Humain, the fund is seeking to combine capital deployment with infrastructure buildout, partnerships with leading technology firms, and domestic capacity development to reduce reliance on oil revenues and expand into advanced industries.
The $3 billion commitment offers potential for long-term capital gains while reinforcing the company’s role as a strategic, scaled investor in transformative technologies.
CEO Tareq Amin said: “This investment reflects Humain’s conviction in transformational AI and our ability to deploy meaningful capital behind exceptional opportunities where long-term vision, technical excellence, and execution converge, xAI’s trajectory, further strengthened by its acquisition by SpaceX, one of the largest technology mergers on record, represents the kind of high-impact platform we seek to support with significant capital.”
The deal builds on a large-scale collaboration announced in November at the US-Saudi Investment Forum, where Humain and xAI committed to developing over 500 megawatts of next-generation AI data center and computing infrastructure, alongside deploying xAI’s “Grok” models in the Kingdom.
In a post on his X handle, Amin said: “I’m proud to share that Humain has invested $3 billion into xAI’s Series E round, just prior to its historic acquisition by SpaceX. Through this transaction, Humain became a significant minority shareholder in xAI.”
He added: “The investment builds on our previously announced 500MW AI infrastructure partnership with xAI in Saudi Arabia, reinforcing Humain’s role as both a strategic development partner and a scaled global investor in frontier AI.”
He noted that xAI’s trajectory, further strengthened by SpaceX’s acquisition, exemplifies the high-impact platforms Humain aims to support through strategic investments.
Earlier in February, SpaceX completed the acquisition of xAI, reflecting Elon Musk’s strategy to integrate AI with space exploration.
The combined entity, valued at $1.25 trillion, aims to build a vertically integrated innovation ecosystem spanning AI, space launch technology, and satellite internet, as well as direct-to-device communications and real-time information platforms, according to Bloomberg.
Humain, founded in August, consolidates Saudi Arabia’s AI initiatives under a single entity. From the outset, its vision has extended beyond domestic markets, participating across the global AI value chain from infrastructure to applications.
The company represents a strategic initiative by PIF to diversify the Kingdom’s economy and reduce oil dependence by investing in knowledge-based and advanced technologies.
