UK economy ruins concerns of instant Brexit growth hit
The UK’s economic growth slowed moderately during the three months after Brexit, as official data disclosed on Thursday, thus defying warnings of a heavy impact and further diminishing the probability of the Bank of England dropping rates next week.
The British economy surged by 0.5% during the July-September period, which is less rapid than the unusually sturdy growth of 0.7% observed during the second quarter, though comfortably above a median forecast of 0.3% in a Reuters survey of economists.
There’s little evidence of a pronounced impact in the immediate aftermath of Brexit, as some financial analysts told.
The UK’s dominant services industries provided all the growth, backed by a boom in the film as well as television sector as the latest publications in the Jason Bourne and Star Trek series impacted the screens along with other blockbusters.
The British pound leapt to a one-week peak against the greenback after the data and the yield on 10-year government bonds reached its highest level since the EU on membership referendum as traders discounted the probability of a BOE rate drop on November 3.