No evidence of a significant impact of the outcome of the Brexit Referendum on services output figures
Figures from the Office for National Statistics show that services grew 0.4 per cent in July, slightly faster than the 0.3 per cent between May and June, leaving output 2.9 per cent higher than a year earlier. The figures are the first to provide hard evidence on how the sector, which makes up four-fifths of the UK Economy has fared since the Brexit Referendum.
British Chancellor, Philip Hammond welcomed the figures saying, “We want to build on this strength as we forge a new relationship with the EU and deliver an economy that works for all.” The UK is well-positioned to deal with the challenges, and take advantage of the opportunities, that lie ahead.”
Before the Brexit Referendum, many economists had warned that heightened uncertainty from a Brexit vote could lead to a sharp slowdown in growth. This fear was borne out by business surveys carried out in July that pointed to a precipitous drop in activity and confidence. However, so far this has not been apparent in the hard data.
According to the ONS, there was “no evidence of a significant impact of the outcome of the EU referendum on July’s services output figures”. But it warned that data could be volatile from month to month and that not too much should be read into one month’s figures.
The 4 main components measured were;
- Business Services and Finance: +0.3%
- Transport, Storage and Communications: +1.6%
- Hospitality (Hotels, Restaurants): +0.0%
- Government & Other: +0.2%
(Source: Office for National Statistics)