More signs of strong growth after Brexit vote

More evidence of the UK’s post-Brexit resilience piled up today as manufacturers and builders thrived and the nation’s trade gap narrowed in December.

The positive figures prompted speculation that the Office for National Statistics could upgrade growth for the final quarter of last year from an already strong 0.6%.

The data showed pharmaceuticals and metals manufacturers driving a 2.1% output jump for the sector, the best since before the referendum last June.

A surge in housebuilding also helped the UK’s construction sector push ahead with 1.8% growth, while the nation’s overall trade gap narrowed more than expected, from £4.2 billion to £3.3 billion over the month.

The figures follow the Bank of England’s surprise hike to growth forecasts in its recent inflation report, although rising inflation is expected to curb consumer spending this year.

ScotiaBank’s Alan Clarke said: “We all thought the Bank were mad when they came out with a 2% growth forecast for this year. They may come out of this looking very smart… other things equal, this points to Q4 growth being revised up to 0.7%.”