Pace of economic growth picked up last quarter

The UK economy grew by 0.6% last quarter, increasing at a slightly-faster rate than at the start of the year.

Economic growth in the three months to June came in ahead of analysts’ expectations of 0.5%, which itself was just above the first-quarter figure of 0.4%.

The figure was boosted by a strong start to the quarter, and only just captured the EU referendum date and its immediate impact.

It is the 14th consecutive quarter of economic growth stretching back to the start of 2013.

Scott Knowles, chief Executive of East Midlands Chamber, said: “Given the uncertainty leading up to the EU Referendum, these figures are a lot more positive than might have been expected.

“Preliminary estimates published this morning by the Office of National Statistics show growth up from 0.4% in Q1 to 0.6% Q2 and output in services up 0.5% and production up by 2.1%.

“The year-on-year figure is up 2.2% and up 7.7% compared with the same period in 2008.

“There have been all sorts of reports out since the referendum, many suggesting that the economy is on the brink of recession. These figures tell a different story, although it would be nice to see more positive whole numbers in there.

“The real test will be the Q3 figures which will give the first quarterly indication of the impact of the exit vote and subsequent collapse of governance.”

Ian Borley, East Midlands senior partner at KPMG said: “Today’s GDP figures show solid growth in the manufacturing sector, with the strongest quarterly rise in production for 20 years, and with such a strong manufacturing presence in the East Midlands, today’s results highlight the importance of the region’s contribution.

“We are, however, still in a period of uncertainty, and it won’t be until later in the year that we start to see what’s happened in the economy since the vote to leave the EU at last month’s referendum.”