EG: Economic growth for third quarter revised upwards to 0.6% by ONS
There was no sign of a Brexit-linked slowdown for the UK economy in the latest revisions to official growth figures.
But while the Office for National Statistics (ONS) upwardly revised third quarter growth to 0.6% from 0.5% in its previous reading, it said the annual rate of growth eased to 2.2% because of other revisions.
The latest data suggested that the economy's dependence on consumer spending was greater than first thought in the three months to September as it offset a markedly worse picture for trade.
Net trade, the ONS said, acted as a drag of 1.2 percentage points in the quarter - its highest level in almost five years - though it said much of the revision was down to a recent correction in the miscalculation in the trade of gold.
More recent figures have suggested exports are now just starting to benefit from the collapse in the value of the pound in the wake of the EU vote - a scenario which makes UK-priced goods cheaper for foreign buyers.
Some experts had predicted the economy would suffer in the event of a Leave win in June's referendum but it has proved more resilient, largely because consumer spending has held strong.
While the headline growth figure is encouraging for the Chancellor, Philip Hammond, he warned in his Autumn Statement that tougher times lie ahead of the economy amid uncertainties over the terms of the divorce from the EU.
Consumer sentiment is also expected to face a greater test in the coming months because inflation, at a two-year high, is predicted to climb further as imports become more expensive compared to a year earlier.
Economists see a squeeze on household spending power as those rising costs become more likely to be passed on through new supply contracts.
Howard Archer, chief European and UK economist at IHS Markit, said the latest economic figures suggested people were dipping in to savings to help fund big purchases now ahead of price hikes ahead.
"Despite the current resilience, 2017 is likely to be an increasingly difficult year for the UK economy," he said.
"Indeed, we expect GDP growth to slow markedly to 1.3% in 2017 - as consumer fundamentals weaken markedly and uncertainty is heightened by the Government triggering Article 50 to formally start the UK's exit from the European Union."
