UK GDP beats expectations, rising 0.6%

UK-Currency-Money-Coins-700.jpgUK GDP has exceeded expectations, rising by 0.6 per cent in the second quarter, showing the UK economy was robust ahead of Brexit.

Official figures show estimated GDP for April to June was 0.6 per cent, ahead of the 0.4 per cent recorded in the previous quarter. The figures include one week of the post-Brexit period.

The rise is ahead of market expectations, which were predicting a 0.5 per cent increase.

Looking at sectors, services increased by 0.5 per cent and production increased by 2.1 per cent, while construction decreased by 0.4 per cent and agriculture decreased by 1 per cent.

New chancellor Phillip Hammond welcomed the figures, saying the “fundamentals of the British economy are strong”.

“In the second quarter of this year our economy grew by 0.6 per cent – faster than was expected. Indeed we saw the strongest quarterly rise in production for nearly 20 years, so it is clear we enter our negotiations to leave the EU from a position of economic strength.

“Those negotiations will signal the beginning of a period of adjustment, but I am confident we have the tools to manage the challenges ahead, and along with the Bank of England, this government will take whatever action is necessary to support our economy and maintain business and consumer confidence.”