Strong consumer spending helped the Britain’s economy to grow faster than expected at the conclusion of a year ago.
The amount indicates that the dreaded economic slow down after the Brexit election has not materialised.
“Strong consumer spending supported the expansion of the dominant services sector,” said ONS statistician Darren Morgan.
“Even though production rebounded back from a poorer third quarter – both it and building remained broadly unchanged over the year as a whole.”
The quarterly growth amount was somewhat better compared to 0.5% rate most economists had anticipated.
Retail revenue and travel organizations also supported growth in https://mobile.yahoo.com/finance/ this market, the ONS said.
The figures also revealed that the building market grew by 0.1% and agriculture by 0.4%, while industrial production was unchanged.
Kamal Ahmed, BBC economics editor
After another set of financial figures stronger than anticipated, is that this economic pain cancelled, or just postponed?
On such a fundamental issue sets the fate of the government’s economic plan.
It indicates greater tax invoices for the authorities, lower degrees of credit and more leeway to spend money on community services.
If it’s hurting terminated meaning better real profits for voters.
And, obviously, self-confidence will beget confidence.
Read Kamal’s site in full
Shelter Hopley, main economist of the makers’ lobby group, EEF, said: “While services continued to drive the economy forward by the end of last year, manufacturing output also formed a small positive contribution, as growth ended the year on a sound notice.”
The ONS points out the data on which the initial estimate is situated is less than half the entire amount it has access to by enough time of the next estimate.
This is actually the first approximation of the size of the economy in the fourthquarter of the twelvemonth. At the very least 2 mo-Re will follow.
Nonetheless, she added that “challenges abound for forecasters in 20 17”.
“Customers won’t be ramping-up spending thanks to increasing inflation and slow wage growth, and companies’ appetite to sign-off enormous investments will be contingent on how they see the advancement of Brexit negotiations.
“There’s every chance that this speed of growth is the high-point for another year or two.”
That view was echoed by Rain Newton-Jones, chief economist at the CBI business reception team.
“20 17 will dsicover headwinds to growth creating, as greater inflation takes into households’ buying power and investment wanes,” he said.