Post-Brexit uncertainty slows economy to 0.5% growth

THE economy grew by 0.5% last quarter, showing better than expected growth following the Brexit vote in June but a slowdown on last quarter.

Analysts had predicted a much lower rate of 0.3%, as there was an expectation that the economy had been affected by the surprise Leave vote at the end of June. It is much higher than the very gloomy predictions of 0.1% in the immediate aftermath of the referendum.

GDP was 2.3% higher in Q3 2016 compared with the same quarter a year ago, but the figures show a slowdown on the previous quarter in which the economy grew by 0.7%.

In its announcement today, the Office for National Statistics said: “The pattern of growth continues to be broadly unaffected following the EU Referendum with a strong performance in the services industries offsetting falls in other industrial groups.”

It is the last set of GDP data before next month’s Autumn Statement, the first for new Chancellor Philip Hammond.