British economy shows modest post-Brexit growth: statistics

Britain's economy in the immediate quarter after Brexit showed a modest growth rate of half a percent, the Office for National Statistics (ONS) revealed Thursday.

While the growth in the July-September quarter was slower than the 0.7 percent growth in the second quarter, it was higher than the 0.3 percent predicted by analysts. Figures show GDP grew 2.3 percent in the third quarter compared with the same quarter in 2015.

This is the first release of GDP figures covering a full quarter of data following the EU referendum.

Before the June 23 referendum when Britons voted to leave the European Union, some economists and politicians had been warning of a catastrophe for the British economy in the event of a vote to leave.

"The pattern of growth continues to be broadly unaffected following the referendum with a strong performance in the services industries offsetting falls in other industrial groups," said the ONS.

Commenting on the GDP figures, ONS chief economist Joe Grice said the data provide the most comprehensive picture so far of the post-referendum UK economy. "While quarterly growth has fallen slightly, the economy has continued to expand at a rate broadly similar to that seen since 2015 and there is little evidence of a pronounced effect in the immediate aftermath of the vote."

"A strong performance in the dominant services industries continued to offset further falls in construction, while manufacturing continued to be broadly flat."

In July-September, the services industries increased by 0.8 percent. In contrast, output decreased in the other three main industrial sectors with construction dropping by 1.4 percent, agriculture by 0.7 percent and production by 0.4 percent, within which manufacturing decreased by 1 percent.

The figures released Thursday are the last set of GDP data before Chancellor of the Exchequer Philip Hammond makes his autumn statement on the economy to the House of Commons next month.

In one of the first responses to the figures, Britain's main trade union body TUC representing millions of workers called on Hammond to boost jobs and pay packets.

TUC chief Frances O'Grady said: "We can't yet say what impact Brexit will have on our economy, but these figures show there's no room for complacency. British manufacturing is still struggling, and now faces real uncertainty following the vote to leave the EU.

"The government must use next month's autumn statement to boost Britain's jobs and wages. This means investing in infrastructure like roads, rail and homes, and raising the national minimum wage." Endi