Strong consumer spending helped the United Kingdom’s economy to grow faster than expected by the end of last year.
The figure indicates that the feared economic slowdown after the Brexit vote hasn’t materialised.
For 20-16 as whole, the economy grew by 2%, down from 2.2% in 2015.
“Strong consumer spending backed the growth of the dominant services market,” said ONS statistician Darren Morgan.
“Even though manufacturing bounced back from a weaker third-quarter – equally it and construction remained broadly unchanged on the year all together.”
The quarterly increase https://www.ford.com/finance/ figure was marginally a lot better than the 0.5% speed most economists had expected.
Retail revenue and travel agencies also supported growth in this market, the ONS said.
The figures also demonstrated that the development market grew by 0.1% and farming by 0.4%, while commercial production was unchanged.
Kamal Ahmed, BBC economics editor
After another group of financial figures stronger than expected, is this economical discomfort terminated, or simply delayed?
On that essential problem sets the fate of the government’s economic policy.
If it is hurting cancelled meaning better actual earnings for voters.
It means higher taxes receipts for the authorities, lower degrees of borrowing and more lee-way to put money into community services.
And, of course, confidence tends to beget assurance.
Study Kamal’s website in full
The ONS highlights the information on which the initial approximation relies is less than half the total amount it’s access to by some time of the third estimate.
This can be the initial estimate of how big is the economy in the fourth quarter of the year. At the very least 2 more may follow.
Lee Hopley, key economist of the manufacturers’ lobby group, EEF, said: “While providers continued to operate a vehicle the market forward at the end of this past year, manufacturing output also formed a little positive contribution, as growth ended the year on a solid note.”
On the other hand, she added that “difficulties abound for prognosticators in 2017”.
“Consumers won’t be ramping up spending as a result of increasing inflation and slow wage increase, and companies’ appetite to sign-off enormous assets will depend on the way in which they see the improvement of Brexit dialogues.
“There’s every chance this rate of growth is the high-point for the following year or two.”
That view was echoed by Rain Newton-Jones, chief economist at the CBI business reception team.