Economic Indicators, September 2016

A series of positive economic data in August and early September appeared to defy predictions of immediate Brexit gloom. Nevertheless, a lack of hard data on the state of the UK economy post-EU referendum coupled with forecasts for weak economic growth means caution is very much still in order.

Other data released in the last month indicate the economy was in good shape leading up to the referendum.

GDP Growth

GDP grew by 0.6% in real terms in Q2 2016 compared with the previous quarter. This was higher than growth of 0.4% in Q1 2016.

Labour market continues to perform well

The unemployment rate was 4.9% in April-June 2016, the lowest rate since 2005.

Fall in the value of Sterling

The value of the pound fell following the vote to leave the EU on 23 June. The Sterling Exchange Rate Index was 10% lower in August than in May 2016.