British growth beats forecast after Brexit vote

Britain’s economy has held up better than expected in the wake of its Brexit decision.

The UK economy slowed only slightly in the three months following voters’ decision to exit the European Union, according to an official estimate on Thursday that confirms the UK weathered the surprise referendum result better than many expected.

In the most comprehensive snapshot of the UK economy since the Brexit vote, the Office for National Statistics said the economy expanded 0.5 per cent in the third quarter compared with the second, an annualized rate of 2 per cent.

Third-quarter growth was above expectations of analysts polled by The Wall Street Journal, who forecast an expansion of 0.4 per cent on the quarter. Still, it was down compared with the previous three months, when the economy grew 0.7 per cent, an annualized rate of 2.7 per cent.

Thursday’s figures confirm the picture of the economy painted by a series of economic indicators and surveys since the Brexit vote, which described a swift recovery in activity after an initial post-referendum shock.

But economists caution that a deeper slowdown may still lie ahead, as uncertainty over the economy’s future ties to the EU weigh on business investment and a revival in inflation squeezes consumers’ wallets.

Dow Jones