GDP GROWTH AND BUSINESS INVESTMENT HOLD UP WELL

Research from the ONS shows that business investment following the Brexit vote was up 0.9% on the figure for the second quarter. Although this is positive news, the ONS pointed out that many of these investment decisions could have been taken before polling day. Business investment figures have held up well.

Gross Domestic Product (GDP) for the third quarter grew by 0.5%, helped by export growth and stronger consumer spending. Taken with the encouraging data on investment, these figures show the economy expanding broadly in line with its historic average.

Analysis of the data underlines the importance of the huge services sector that underpins the UK’s continued economic growth. Services increased by 0.8% in the third quarter, fuelled by the continued strength in performance of the British high street. By contrast, the manufacturing, agriculture and construction sectors are all contracting.

The Office for Budget Responsibility (OBR) has forecast that the economy will grow by 1.4% in 2017, down from the 2.2% it predicted in March. Some think it likely that the strength of the economy will diminish as inflation rises, wages stagnate and the path to Brexit becomes clearer.

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE