GDP: Economy grew 0.5% in quarter following Brexit vote

The UK economy grew by 0.5% in the three months following the Brexit vote, the latest figures from the ONS show.

That is down 0.2% from 0.7% during the second quarter of 2016, showing that growth has slowed.

However it is stronger than the 0.3% which economists had expected.

The service sector, which makes up three quarters of the economy, is the only part of the economy which saw growth over the quarter with output up by 0.8% between July and September.

However, construction shrank by 1.4%, agriculture dropped by 0.7%, industrial production by 0.4% and manufacturing was down by 1%.

Jeremy Duncombe, director, Legal & General Mortgage Club, said: “Despite all the predictions of severe disruption to the financial markets following the UK’s decision to leave the EU, these figures paint an altogether more positive picture which shows that Britain’s economy remains in a strong position.

“For the mortgage market specifically, there has not been the slowdown in lending nor the reduction in demand for property that some expected.

"In fact, mortgage lending remains well up annually, as a growing number of people choose to take advantage of record low interest rates to secure a good deal on their mortgage.

"At the same time, without a supply-side initiative from the government, strong demand for property continues to push house prices up yet further.”

On an annual basis, the UK economy grew by 2.3% during the last quarter.