Exports put factories on the best UK run for 20 years

Two separate studies show the economic benefits of booming exports
Renewable energy and boats, planes and cars production boosted the figures
The size of the economy grew by 0.6 per cent between October and December
The UK has just had the seventh month of increased factory output in a row

By Hugo Duncan For Dailymail.com

Published: 00:08 GMT, 11 January 2018 | Updated: 00:25 GMT, 11 January 2018

Britain’s economy grew by more than expected last year as booming exports sent manufacturers on their best run for 20 years, figures showed on Wednesday.

Gross domestic product – the total size of the economy – increased by 0.6 per cent between October and December, according to the National Institute of Economic and Social Research (NIESR).

A separate report from the Office for National Statistics found ‘strong and widespread growth across manufacturing’ as renewable energy projects and the production of boats, planes and cars boosted the figures.

The Office for National Statistics said last month that the UK economy grew at an annual rate of 1.7 per cent in the third quarter of 2017, up from the 1.5 per cent it had previously recorded

Brexit Secretary David Davis warned last month that the impact of Brexit on the UK economy could be as great as the 2008 credit crunch

The institute said the pick-up in the economy towards the end of 2017 took growth for the year to 1.8 per cent – well above the 1.4 per cent the think-tank predicted 12 months ago.

15 per cent boost for the poorest

Britain’s poorest families have enjoyed a far bigger improvement in their finances than the richest since the recession, figures showed yesterday.

The Office for National Statistics said average household disposable incomes hit a record £27,300 last year – up by more than £1,600 since 2008. With higher taxes hammering the rich, the poor have seen the biggest gains in the decade since the financial crisis.

The ONS said average disposable income among the poorest fifth of households swelled by £1,825 (15 per cent) between 2008 and 2017.

By contrast, the richest fifth typically have just £225 (0.4 per cent) more to spend.

Experts said the report undermined claims from Labour that inequality was rising in the UK.

Former Chancellor George Osborne – the architect of Project Fear during the Brexit referendum campaign – had warned that a vote to leave the EU would plunge Britain into recession.

But the NIESR said the economy in fact accelerated as 2017 went on, with growth picking up from 0.3 per cent in the first and second quarters to 0.4 per cent in third and 0.6 per cent in the fourth.

Institute economist Amit Kara said: ‘Economic growth picked up in the second half of 2017 after a period of subdued growth in the first six months.

‘Activity has strengthened by more than we had previously anticipated.’

The ONS said manufacturing output rose by 0.4 per cent in November alone to its highest level since February 2008 as the fall in the pound since the Brexit vote boosted exports. It was the seventh month of increased factory output in a row – the longest streak since mid-1996 to early 1997 when John Major was Tory prime minister.

Brexit campaigner John Longworth said: ‘All the institutions of the EU and of the UK got their predictions of UK growth wrong … Britain will do well with or without a trade deal with the EU.’

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