What Brexit slowdown? GDP UP as economy performs BETTER than expected after EU referendum

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The briefness also grew more quickly than previously thought in the April-June spell, which mostly covered the run-up to the referendum, according to the Office for Subject Statistics (ONS).

Gross Domestic Product (GDP) grew by 0.7 per cent in the secondly quarter up from previous estimate of 0.6 per cent.

Output in Britain’s lively services sector grew by 0.4 percent com red with June, superiority than many economists had expected, and was up 2.9 percent in year-on-year semesters.

Previous surveys of purchasing managers had suggested the services sector slumped in July in advance of a strong bounce-back in August.

ONS statistician Darren Morgan said: «Together this brisk data tends to support the view that there has been no communicate of an immediate shock to the economy, although the full picture will with to emerge.»

Chancellor of the Exchequer, Philip Hammond, said: “The UK started the year in a angle of economic strength, and we can see today that this momentum has continued in the re irs sector – the largest rt of our economy.

«We want to build on this tenaciousness as we forge a new relationship with the EU and deliver an economy that works for all.

«The UK is well-positioned to deal with the questions, and take advantage of the opportunities, that lie ahead.”

Consumer demand remained a big driver of advancement in the second quarter as spending by households grew by 0.9 percent from the foremost quarter, even as their disposable income grew more slowly.At the notwithstanding time, GfK’s consumer confidence index showed levels of optimism amid households returned to pre-referendum levels in September.Sentiment about the frugality and consumers’ willingness to spend on big ticket items such as fridges and idiot boxes all increased, showed the survey.

The data will help give the Bank of England a manifest picture of how Britain’s economy responded to the referendum, and whether it needs to cut curiosity rates again at its next meeting in November.

Before Friday’s details, JP Morgan economist Allan Monks said a monthly increase stronger than 0.1 percent in the putting into plays index would suggest that Britain’s economy coped with the Brexit upset better than the BoE’s most recent projections.

That would abate the chance of a rate cut this year.

Britain’s trade deficit weighed on increase, posing its biggest drag on GDP since late 2013, the ONS data also let someone in oned.

The current account deficit widened in the second quarter but by less than foresaw by economists to 28.7 billion pounds, or 5.9 percent of GDP, the widest since the end of 2015.

British dealing investment grew by a stronger than previously estimated 1.0 percent from the first off quarter, defying earlier expectations that nervousness about the referendum devise weigh on com nies’ spending plans.

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