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Q3 gives festive cheer for UK, France

Friday, December 23, 2016 - 01:36

Britain's economy grew more strongly than expected in the third quarter, showing no sign of any slowdown from June's Brexit vote. As Ivor Bennett reports, France also has cause to celebrate.

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There's never any doubt the shops will be full in the run-up to Christmas. but in Britain, the spending spree hasn't just been festive. Even with the vote to leave the EU, 3rd quarter domestic demand stayed strong. helping the economy grow by 0.6 percent. (SOUNDBITE) (English) LONDON CAPITAL GROUP, SENIOR MARKET ANALYST, JASPER LAWLER, SAYING: "The UK economy's proven much more resilient than many had expected. That uncertainty factor surrounding the referendum shows to have almost been non-existent in the third quarter." When it comes to sterling, though, there is some uncertainty. Still no sign its drop has boosted exports. In fact, net trade was drag - its biggest in nearly five years. Concern too around rising inflation. (SOUNDBITE) (English) LONDON CAPITAL GROUP, SENIOR MARKET ANALYST, JASPER LAWLER, SAYING: "Those higher prices a few more people unemployed, that can start to weigh on spending. That's when we really start to see the economy slow. So that's the risk factor here. But it's probably a little bit more overblown than many suspect. And I think that the resiliency can continue." Across the channel, France hasn't exactly been a beacon of prosperity. but data there too is adding some sparkle. GDP and consumer spending heading in the right direction. (SOUNDBITE) (English) LONDON CAPITAL GROUP, SENIOR MARKET ANALYST, JASPER LAWLER, SAYING: "It's part of the general sluggish move higher, a sluggish recovery in europe as a whole. While unemployment is still much too high in France, I think the growth is probably as best as you could expect." In both France and the UK though, there's a sense of enjoy it while you can in case things lose their shine.

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Q3 gives festive cheer for UK, France

Friday, December 23, 2016 - 01:36