Unlike much of continental Europe, the UK seems to be doing quite well. “Advance” GDP figures were released this week indicating GDP grew at 0.6% over the June quarter, better than the 0.4% expected and higher than the 0.4% recorded in the March quarter. On a yearly basis, GDP expanded by 2.2%, up on the March quarter comparable number of 2.1%. The figures are preliminary and are likely to be amended as more data becomes available and of course the figures don’t include the fallout from the “Brexit” vote on 23 June.
ANZ responded to the latest GDP figures by saying, “…the economy was humming along nicely into Brexit.” There it would seem to end, though. ANZ suggested data released since the UK’s June 23 EU vote pointed to a drop in business confidence, less business investment and staff hiring. St George Bank economist Janu Chan expected to affect these to flow into Q3 figures. “The downward impact of the Brexit vote on economic activity will likely take a greater hit in the September quarter however, the data suggests stronger momentum just prior to the Brexit vote than previously thought.”