STRONG BRITAIN: Pound rallies as economy GROWS 0.5% post-Brexit proving fear-mongers WRONG

BRITAIN’s economy defied doom-monger warnings and kept booming in the months following the vote to leave the European Union (EU), official figures showed.
 
Britain’s GDP grew by a massive 0.5 per cent in the three months to the end of September, ahead of expectations of 0.3 per cent, according to initial estimates by the Office for National Statistics (ONS).
 
The growth was a slight slowdown from the 0.7 per cent in the second quarter of 2016, but is higher than the 0.3 per cent expansion seen in the same period last year.
 
It means the economy was 2.3 per cent higher in the third quarter of 2016 compared with the same quarter a year ago.
 
Sterling surged off the back of the data, as the likelihood of another interest rate cut from the Bank of England fades.
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The pound hit around 1.1245 against the euro and 1.2275 against the US dollar.
Between July and September this year, Britain’s vital service sector grew by a whopping 0.8 per cent, the data showed.
 
Output in the less important industrial groups fell, with construction decreasing by 1.4 per cent, agriculture by 0.7 per cent and production by 0.4 per cent.
 
The ONS said: “The pattern of growth continues to be broadly unaffected following the EU referendum with a strong performance in the services industries offsetting falls in other industrial groups.”
 
Experts said the figures proved Britain would continue to thrive as it exits the EU.
 
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Chancellor Philip Hammond hailed today’s GDP figures

Ryan Bourne, member of Economists for Brexit and head of public policy at the IEA, said: “Ahead of the referendum, the Treasury forecast an economic contraction in Q3, the IMF forecast a crash in equity markets and the Treasury warned of a technical recession.
 
“These were just a selection of wildly inaccurate short-term forecasts based on the poorly-evidenced effects of supposed policy ‘uncertainty’ and expected lower growth potential outside the EU.
 
“With referendum campaigning complete and evidence these forecasts were utterly inaccurate, now is the time for humility from these institutions.”
 
Jake Trask, currency analyst at UKForex, said: “Sterling rose this morning as UK third quarter GDP beat estimates to print at 0.5 per cent, ahead of the 0.3 per cent forecast.
 
“The doomsday scenarios predicted about the impact of a Brexit vote on the UK economy seem wide off the mark, given this better-than-expected reading.”
 
It comes as car giant Nissan today confirmed it would build its new Qashqai model in Sunderland, giving the economy amother major boost.
 
The decision has been seen as a major vote of confidence in Britain following the vote to leave the EU.
 
Chancellor of Exchequer, Philip Hammond, said: “The fundamentals of the UK economy are strong, and today’s data show that the economy is resilient.
 
“We are moving into a period of negotiations with the EU and we are determined to get the very best deal for households and businesses.
 
“The economy will need to adjust to a new relationship with the EU, but we are well-placed to deal with the challenges and take advantage of opportunities ahead.”

Source:
http://www.express.co.uk/finance/city/725746/UK-economy-grows-5-Q3-GDP