UK car production heads for first annual fall since financial crisis - as it happened

The number of cars made in UK factories fell 2% in the first 11 months of the year, putting the industry on course for its first annual fall in production since 2009, when Britain was in the depths of the financial crisis

• Unite: plunging car figures show UK is in the 'slow lane'
• Government borrowing falls in November
• US GDP revised down; jobless claims rise

3.16pm GMT

That's all for today. Thank you for following the blog and for all your comments. Please join us again tomorrow morning. AM

3.14pm GMT

Before closing up for the day, some good news from Toys R Us where about 2,000 jobs are expected to be saved.

Related: Thousands of UK Toys R Us jobs saved after deal with pensions body

2.17pm GMT

Balraj Sroya, trader at Foenix Partners, gives his take on US GDP for the third quarter, which was revised down to an annual rate of 3.2%.

US GDP is still on track for Trump to keep to his campaign promise of 3% GDP for 2017 even as Q3 missed forecast projections. The GDP print came out lower than consensus at 3.2%, with the blame placed on weaker consumer spending.

With the GOP tax bill being passed earlier in the week, Republicans are expecting the changes in tax code will see wages increasing and the average consumer having more disposable income.

1.46pm GMT

There were 245,000 new US jobless claims in the latest week, more than the previous week and more than the 231,000 predicted by economists.

[Insights] #USD - Initial Jobless Claims - 1st negative surprise for the last 4 weeks#InitialJoblessClaims

1.40pm GMT

The US economy grew by an annual rate of 3.2% in the third quarter, slightly slower than the 3.3% estimated previously.

Despite the downgrade, it was the quickest pace of growth since the first quarter of 2015 and an improvement on the 3.1% growth in the second quarter.

1.22pm GMT

The FTSE 100 is up 35 points and outperforming its major European peers this afternoon, as investors remain fairly subdued.

The latest scores:

12.45pm GMT

Billionaire property developers the Candy brothers have won a bruising high court battle after a judge dismissed all claims brought against them by a former friend for extortion, blackmail, intimidation and breach of the data protection act.

Related: Candy brothers win high court battle

12.07pm GMT

John McDonnell, the shadow chancellor, has given his take on this morning's public finances figures, which showed borrowing fell in November.

These figures are further bad news just before Christmas following on from the IMF's gloomy outlook issued yesterday. They only remind us yet again of the broken Tory promises to eliminate the deficit by 2015. The national debt continues to grow despite the tricks the Chancellor attempted in his Budget last month with Housing Association debt to hide his failure on the economy. This continued failure by the Tory Government over these past seven years is simply unacceptable.

These figures today reaffirm why we need an urgent change of course next year, halting the growing emergency in our public services and ending the failed Tory austerity cuts.

Related: Gloomy Brexit forecasts for UK are coming true, says IMF

11.21am GMT

John Hawksworth, chief economist at the accountancy firm PwC, takes a look at some of the detail in the November public finances data:

Public borrowing in November was broadly unchanged from last year, but for the financial year to date the budget deficit is running around 3 billion less than in the same period last year. This reflects central government receipts growing at around 4%, while central government spending has only been rising at around 3%. VAT, income tax, national insurance and stamp duty revenues have all been growing at a reasonable rate so far this year.

As the OBR has indicated, however, self-assessment receipts in early 2018 may be less strong than in early 2017, so today's figures still leave public borrowing on track to come in at around 50 billion in 2017/18 as a whole.

10.47am GMT

The Treasury has responded to the latest public finances figures, seizing on the fact that borrowing in the fiscal year so far is the lowest since 2007.

A spokesperson said:

This is the best year-to-date borrowing in a decade, but there is still further to go to repair the public finances.

We continue to build an economy fit for the future by taking a balanced approach, getting debt falling while investing in our vital public services and keeping taxes low.

10.41am GMT

The jewel in Britain's manufacturing crown is at risk because of Brexit uncertainty and falling wages according to Britain's largest union, Unite.

The latest figures from the Society of Motor Manufacturers and Traders show the number of cars made in British factories destined for the UK market plunged 28% in November to 24,276. It was the fourth month in a row that cars built for the home market fell.

This is awful news in the run-up to Christmas for the British car industry and the UK economy. The continued falling demand in the UK market because of Brexit uncertainty and falling wages is yet more evidence of the government's economic incompetence.

When other economies around the world are motoring ahead, the UK is stuck in the slow lane hobbled by the biggest squeeze in wages since the Napoleonic era. Meanwhile uncertainty around Brexit is leaving motor manufacturers stalling on the investment needed to maintain Britain's world leading status in car making.

10.30am GMT

The UK government borrowed 8.7bn last month, which was 200m less than the same month last year and the lowest November net borrowing since 2007, on the eve of the financial crisis.

It was lower than the 8.9bn predicted by economists. The figure for October was also revised down, to 7.8bn from 8bn, topping off some decent news for the chancellor, Philip Hammond.

While a continuation of the current trend would see borrowing undershoot the OBR's forecast by 7bn, some deterioration in the public finances should occur towards the end of the fiscal year. In particular, strong self-assessment tax receipts collected in January and February 2017 - due to changes in the dividend tax rate - won't be repeated.

As a result, we doubt that borrowing will come in significantly below the OBR's current 49.9 forecast for the 2017/18 fiscal year. However, if we are right in thinking that the OBR is too gloomy about the prospects for GDP growth, then borrowing should come down at a faster rate than it expects further ahead.

9.49am GMT

Alex Buttle, director at the car comparison website, motorway.co.uk, is downbeat about prospects for Britain's car industry:

This is a stunning fall in domestic demand and pretty much sums up the last six months for an industry reeling from punitive diesel taxes and crumbling consumer confidence.

The fact that manufacturing levels fell just 4.6% last month, when domestic demand dropped off a cliff, shows just how reliant we are on exports. And that's probably more worrying than faltering demand, as right now we have no EU trade agreement and zero clarity over trading agreements with countries outside the EU.

9.33am GMT

The number of cars made in UK factories in the first 11 months of the year was 2% lower than over the same period in 2016, at 1.58m vehicles.

If the weak trend persists in December, UK car production will have suffered its first annual fall since 2009, when Britain was in the depths of the financial crisis. In that year, production plunged 31% to 999,460 cars.

Exports drive UK car manufacturing in November as domestic demand falters https://t.co/CCcFFB3mKk #UKmfg #UKAutomotive pic.twitter.com/WGlcMAPfGg

9.10am GMT

Britain's listed house builders are among the FTSE 100's biggest fallers this morning:

Related: Sajid Javid promises to liberate leaseholders from 'feudal practices'

8.52am GMT

European investors are in no mood to celebrate this morning, with the major markets following Wall Street lower.

It turns out the markets are not as ecstatic about the successful passage of Donald Trump's as the President himself.

Related: Trump will personally save up to $15m under tax bill, analysis finds

8.35am GMT

UK consumer confidence fell again in December according to the latest monthly snapshot from GfK.

The index fell by one point to -13, marking almost two years of declining consumer confidence.

We need to see several issues move on before the downward trend of the consumer mood changes. We need to have a better sense of how Brexit will pan out, and also of how quickly and how far interest rates will rise. But none of this will be resolved quickly so there's every likelihood that 2018 will take us lower.

8.20am GMT

Garry White, chief investment commentator at Charles Stanley, has found something to be cheerful about in the UK car market:

Despite gloomy news on UK car production, shares in UK-focused car dealership Lookers have still joined the Santa rally and are up 11% since early December low. But down 10% over the year.

8.13am GMT

UK car manufacturing is on course to fall in 2017 overall.

In the first 11 months of the year, a total of 1.58m cars rolled off UK production lines, down 2% compared with the same point in 2016.

8.02am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Brexit uncertainty, coupled with confusion over diesel taxation and air quality plans, continues to impact domestic demand for new cars and, with it, production output. Whilst it is good to see exports grow in November, this only reinforces how overseas demand remains the driving force for UK car manufacturing.

Clarity on the nature of our future overseas trading relationships, including details on transition arrangements with the EU, is vital for future growth and success.