EU Referendum Failed to Stun Economy With GDP Growth Up by 0.6%
Consumer spending rose 3% to levels not seen since the end of 2007, with the economy expanding 2.2% year-on-year
The UK economy experienced growth of 0.6% in the second quarter of 2016 compared to 0.4% in the first quarter, suggesting the EU referendum had little impact on domestic business.
The latest report from The Office for National Statistics indicated consumer spending as a big factor behind the positive economic performance with household spending rising 3% to levels not seen since the end of 2007.
Despite predictions to the contrary, business investment also increased in April to June 2016 by 0.5% – reversing a decrease in the first three months of the year.
However, in year-on-year terms, business investment remained at 0.8% meaning the UK recorded its first consecutive fall in business investment in annual terms over two quarters since late 2009 and early 2010.
Howard Graham, CEO of Company Formations MadeSimple, said:
“This is an unexpected confidence boost for the sector, given the climate of uncertainty in the build up to June’s referendum.
“While it is welcome news, further improvement in investment will be needed if the UK is to recover from the aftershock of Brexit. Nowhere is this more important than in the small business sector, where access to funds can make the difference between a business flourishing or floundering.”