MENU
UK Economics

UK plc grew FASTER than previously thought in three months after Brexit vote in latest blow to Project Fear

  • GDP growth for third quarter has been revised up from 0.5% to 0.6%
  • Upgrade underlines resilience of the UK economy despite Project Fear warnings
  • Services sector and household spending also up, but trade gap widened 

UK plc grew faster than previously thought in the wake of the EU referendum – in the latest body blow to Project Fear.

The economy expanded by 0.6 per cent in the third quarter of the year, up from the initial estimate of 0.5 per cent.

The revised official figures underline the resilience of the UK following the historic Brexit vote.

George Osborne’s Treasury was among bodies predicting in the run-up to the referendum that we would slip into recession.

The economy expanded by 0.6 per cent in the third quarter of the year, up from the initial estimate of 0.5 per cent

The upgrade of the period by the Office for National Statistics (ONS) was driven by a hefty revision to output from the business services and finance industries.

Separate figures for Britain’s powerhouse services sector, which accounts for nearly four-fifths of the UK economy, saw output grow by 0.3 per cent between September and October.

Darren Morgan, ONS head of GDP, said: ‘Robust consumer demand continued to help the UK economy grow steadily in the third quarter of 2016.

‘Growth was slightly stronger than first thought, though, due to greater output in the financial sector.

‘New figures on services also suggest that growth in that predominant sector of the economy continued into October, helped in large part by another strong showing from the retailers.’

Amid a slew of economic data published by the ONS today, household spending rose by 0.7 per cent – or £2.1 billion – between July and September.

Business investment was revised down to 0.4 per cent from 0.9 per cent for the third quarter.

Britain’s current account deficit – measuring the amount of money flowing in and out of the economy – grew to £25.5 billion in the third quarter, up from a revised deficit of £22.1 billion for the quarter before.

Bank of England governor Mark Carney warned in the lead-up to Britain's referendum that the nation relied on the 'kindness of strangers' in order to keep the economy thriving

That was slightly below economists’ predictions of £28.2billion, but there is still only limited evidence of a boost to exports.


Bank of England governor Mark Carney warned in the lead-up to Britain’s referendum that the nation relied on the ‘kindness of strangers’ in order to keep the economy thriving.

It was hoped that the plunge in the value of the pound since the Brexit vote would bolster exports by making UK goods cheaper on the world market.

However, there was little sign of a boost from sterling’s slump, with trade in goods widening to £8.5billion in the third quarter after imports increased by £7.4billion and exports fell by £1.1billion.

http://www.dailymail.co.uk/news/article-4061482/UK-plc-grew-FASTER-previously-thought-three-months-Brexit-vote-latest-blow-Project-Fear.html

Leave a Reply

Be the First to Comment!

Help put the World to rights and leave a Comment

  Subscribe  
Notify of
MENU
Powered by: Wordpress
%d bloggers like this: