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World

UK economy picked up speed before Brexit vote

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Opening sequence

World

UK economy picked up speed before Brexit vote

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COMING UP:UK economy picked up speed before Brexit vote

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Transcript

00:00:00
>> The UK economy shook off pre-referendum nerves to grow in the second quarter. GDP rising 0.6% in the run up to the Brexit vote, beating expectations in the city. The biggest upturn in industrial production since 1999, boosting the figures. The Reuters UK economics correspondent Anna da Costa says the robust rate of growth might not last.
00:00:20
>> Well, the forecasts all pre-referendum were quite grim. I mean, the Bank of England said itself that the economy could tip into recession, and a lot of economists agreed with that. It's a question of seeing whether these predictions of business investment being delayed, and consumers kind of being put off shopping because of their concerns about the economy materializes.
00:00:46
>> Britain's new finance minister says the data proves the fundamentals of the economy are strong. Philip Hammond believes it puts the UK in a position of strength heading in to Brexit negotiations. But he has reiterated that the government and the Bank of England will take whatever action is needed to support the economy.
00:01:01
>> So the Bank of England surprised the market by not cutting interest rates in the previous month. So it is widely expected, the Reuters poll showed majority of economists expect it to cut interest rates.>> Preliminary GDP data is always revised, less than half of the survey data has been included so far.
00:01:22
Hammond will be hoping some other indicators aren't a bad omen. The business survey just last week showed corporate activity shrank this month at its fastest pace since 2009. While at Reuters poll of economists suggest it's like the UK will head into recession over the next year.