Posted: 26/01/17 by PwC LLP
Economic advisers have given their views on the latest UK GDP data.
Andrew Sentance, senior economic adviser at PwC, said: “The UK economy performed slightly better than expected in the final quarter of last year. GDP was up 0.6% on the previous three months, creating a respectable annual average growth rate of 2% for the year as a whole.
“Strong consumer spending has supported growth over the past three months and this has more than offset the dampening impact of Brexit uncertainty in investment. As a result, the services sector has continued to be the driving force for the UK economy in recent quarters. The world economy has also helped economic growth with positive indicators in all the main economic regions - Europe, North America and Asia.
“2017 will be a more testing year for the UK economy as consumer spending will be squeezed by rising inflation. Despite this, we should expect the underlying resilience of the UK economy and healthy global growth to support economic activity in the year ahead. That should enable GDP to grow by close to 1.5% in 2017 even though Brexit uncertainties will have a dampening effect.”