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Post-Brexit Growth of 0.5% for UK Economy

The UK economy has demonstrated a solid rate of growth in the third quarter of 2016, despite fears following the EU referendum.

UK Defies Brexit for Economic Growth of 0.5% in Q3 2016

The UK economy has demonstrated a solid rate of growth in the third quarter of 2016, despite fears following the EU referendum.

According to the Office for National Statistics (ONS), in the first official figures to be published accounting for the period after the results of the Brexit vote, the economy has been less affected by the vote than many industry experts and analysts were expecting.


Britain recorded two consecutive quarters of 0.7% growth in the first half of 2016, with the latest Q3 figures seeing a slight decrease in growth to a rate of 0.5% – the fifteenth consecutive month of growth for the UK.


The strength of the market has defied predictions from both the City and the Bank of England, who projected growth for Q3 to stand at 0.3% and 0.1% respectively.


Commenting on the figures, the chancellor, Philip Hammond, said: ‘The economy will need to adjust to a new relationship with the EU, but we are well-placed to deal with the challenges and take advantage of opportunities ahead.’


The services sector dominated growth in Q3, rising by 2.2% and marking a significant increase on the 0.6% increase seen in the industry over the second quarter of 2016.


According to the official statistics, the construction industry faced the biggest challenges in the wake of Brexit, with a decrease of 1.4% between July and September this year.


Despite a slowing growth for this sector, last week, the Royal Institute of Chartered Surveyors indicated that the industry remains optimistic as nearly half (49%) of construction professionals expected workload to increase by an average of 2.5% over the 12-months.


The news comes as the demand for housing continues to remain high, with the Association of Residential Lettings Agents (ARLA) reporting that the demand for rental property has risen to a 20-month high, as the market faces ongoing undersupply.

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