UK economy grew by 0.5% in Q3 2016, supported by export growth and stronger consumer spending. In its second assessment of the state of the economy during this period, the Office for National Statistics (ONS) clarifies that business investment rose a greater rate than expected. The assessments for economy growth were revised up by 0.9% quarter on quarter amid vote for Brexit, although lower yoy. In December is expected the final data for the third quarter.
The investment of companies increased immediately after the referendum on leaving the EU, although probably most of these investment decisions were taken before election. This, combined with rising consumer spending, encouraged by rising household incomes and the strong performance of the dominant services sector, supporting the economy to expand generally in line with its historical average.
The data cover the period from July to late September and ONS explained that growth in GDP suggests that so far the referendum in late June had limited effect. However, it is expected that the consequences of voting for Brexit and the depreciation of the pound will start to be felt in the coming months.
Unlikely strength of the economy in the short term to keep after voting for Brexit. The prospect of a reduction in real income next year because the inflation rate is a signal of a possible sharp slowdown in consumer spending.
The British economy continues to grow after the vote to leave the EU as well as business investment, although it was feared that both indicators will be affected directly by the decision to leave the union.
The huge services sector is what pulls the economy up. The services grew by 0.8%, driven by strong performance of sales in trade. But all other sectors of the economy – manufacturing, agriculture and construction contract.
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