UK Economic Growth Speeds Up, Despite Brexit Worries

Forex News

Strong consumer spending and warm weather boosted economic growth of Great Britain. The Office for National Statistics (ONS) reported, that economic growth in the three months to July was 0.6% compared to the previous three months, or 2.4% year-on-year. This was the fastest growth since August 2017.

Today’s data also showed that GDP growth in July alone was up 1.6%, compared with a year earlier, while it was 0.3% higher than in June, above forecasts for 1.4% annual growth and a 0.2% monthly gain.

Data from the ONS showed that the GDP growth was boosted by the increase in the retail and services sectors, which offset the decline in production. Volumes of construction also increased. Britain's services sector grew by 0.6% in the three months to July (the biggest rise since January 2017). Construction sector increased by 3.3% (the fastest since February 2017). Industrial output fell by 0.5% over the period.

The data show that the UK economy is aimed at another one quarter of growth, despite concerns about the mixed progress in the negotiations on the withdrawal of Britain from the European Union. Britain's economy has slowed since the June 2016 vote to leave the European Union. UK annual growth rate fell from top spot among the Group of Seven rich nations.