Britain’s service sector continued to grow in July according to statistics released by the Office for National Statistics today ( click here ). New figures show that services sector, which makes up four-fifths of the UK economy, increased by 0.4% in July. This is the first hard data to show the economy did not fall into an immediate slowdown following the Brexit referendum. Other statistics released also show that the economy continued to grow in the run up to the Brexit referendum, increasing by 0.7% in the three months to the end of June 2016. ONS statistician Darren Morgan said: “Together this fresh data tends to support the view that there has been no sign of an immediate shock to the economy, although the full picture will continue to emerge.”
Finance Minister Philip Hammond welcomed the figures commenting “The UK started the year in a position of economic strength, and we can see today that this momentum has continued in the services sector – the largest part of our economy. 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.”
This new data will also be used by the Bank of England in its next meeting and may dissuade a further cut in interest rates.