UK economy grows 0.5% in Q3 after Brexit

According to the Office for National Statistics (ONS), the UK’s GDP increased by 0.5% in the third quarter of 2016 when compared to the previous quarter, following the Brexit decision. There is a slowdown in GDP when compared to the growth of 0.7% in Q2. However, it was up by 2.3% in Q3 of 2016 on a yearly basis when compared to the 2.1% in the same period of 2015.

The growth in GDP in Q3, albeit at a slower pace, was attributed to the increase in exports and the increase in consumer spending, according to media reports.

Data from ONS indicated that the UK service industries were up by 0.8% in Q3 of 2016, on a quarterly basis. However, output decreased in 3 industrial groups including construction (1.4%), agriculture (0.7%) and production (0.4%) quarter-on-quarter.

According to media reports, the Office for Budget Responsibility expects the UK economic growth to be at 2.1% for the full year of 2016, revising its initial estimate of 2.2%.