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Britain's economy grew by 0.4 percent in Aug-Oct: NIESR

Xinhua, November 9, 2016 Adjust font size:

Britain's economy grew by 0.4 percent in the three months to the end of October, according to figures released on Tuesday by the National Institute for Economic and Social Research (NIESR).

The London-based economic think-tank said that its rolling quarterly estimate of GDP growth for October had seen a fall of 0.1 percentage points from the 0.5 percent growth seen in the quarter to the end of September.

Oriol Carreras, research fellow at NIESR, told Xinhua: "Services are the main engine of growth although production and construction are holding it back."

Carreras said that there had been a moderate slowdown in growth compared to the pace before the Brexit referendum on June 23.

Carreras warned that the slowdown would continue into 2017, as inflation mounted: "The slowdown that many had predicted, including ourselves, that would come right after the referendum appears to not have realized as fast as we thought it would. But we do not think that this allows us to hold any expectation that more stark slowdown is not going to happen in the future."

He added: "We expect inflation to go up, and this strength from services might start to wane a bit."

NIESR's latest quarterly forecast published at the beginning of this month, forecast GDP growth of 2 percent this year, with a fall to 1.4 percent in 2017, as the effects of Brexit uncertainty and rising inflation take hold on the economy.

NIESR forecast that Consumer Price Inflation (CPI) would reach 3.8 percent by the end of next year, from its current level (September) of 1 percent per annum, up from 0.6 percent in the year to August. Enditem