UK GDP growth defies Brexit: ONS

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UK gross domestic product rose 0.5 per cent in the third quarter of 2016, up 2.3 per cent year-on-year, according to the Office for National Statistics.

GDP in Q3 2016 was 0.2 per cent lower than the second quarter of the year.

The ONS says the figures show that the Brexit vote has not harmed business performance.

An ONS statement says: “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.”

The ONS figures show that GDP coming from service industries rose 0.8 per cent in the third quarter of 2016.

In contrast, output decreased in the other three main industrial groups.

Construction GDP fell by 1.4 per cent in Q3, agriculture by 0.7 per cent and production by 0.4 per cent, within which manufacturing decreased by 1 per cent.

Legal & General Mortgage Club director Jeremy Duncombe says: “Despite all the predictions of severe disruption to the financial markets following the UK’s decision to leave the EU, these figures paint an altogether more positive picture which shows that Britain’s economy remains in a strong position.

“For the mortgage market specifically, there has not been the slowdown in lending nor the reduction in demand for property that some expected. In fact, mortgage lending remains well up annually, as a growing number of people choose to take advantage of record low interest rates to secure a good deal on their mortgage.

“At the same time, without a supply-side initiative from the Government, strong demand for property continues to push house prices up yet further.”