UK economy grows by 0.5% following Brexit vote
31 Oct 2016
The UK economy grew by 0.5% in the three months following the Brexit vote, figures from the Office for National Statistics (ONS) have revealed.
This, however, was slower than the rate of growth of 0.7% in the second quarter of this year, but was nevertheless stronger than experts had anticipated.
The ONS suggested that the Gross Domestic Product (GDP) figure was led by ‘strong growth in services, particularly films, retail and computer programming’.
During the third quarter of 2016, the services industry increased by 0.8%, but output in other industries, such as construction and agriculture, decreased.
Chancellor Philip Hammond said the GDP figures showed that the economy is ‘resilient’, and that the Government is ‘determined to get the very best deal for households and businesses’ as it moves into a period of negotiation with the EU.
Meanwhile, Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), commented: ‘The growth we have seen is, in no small part, due to small businesses’ hard work and resilience.
‘This is against a backdrop of unavoidable economic uncertainty following the referendum result, coupled with growing domestic challenges.
‘An Autumn Statement that backs UK small business will stand us in the best possible stead for 2017 and uncertain times ahead.’