Brexit: UK economy grew faster than estimated after EU referendum result

Figure has been revised up to 0.6% but disposable income fell at its fastest rate since 2013

Growth was higher than thought but disposable income fell and the budget deficit widened (Getty)

The UK economy grew slightly faster than first forecast in the three months after the Brexit vote, official figures have revealed.

Output expanded by 0.6 per cent in the third quarter, not the 0.5 per cent first reported, the Office of National Statistics said.

The annual figure was dragged lower by downward revisions to first and second quarter growth numbers, which are now 0.3 per cent and 0.6 per cent respectively.

In a potential sign of trouble in store, growth in business investment was just 0.4 per cent, having initially been measured at 0.9 per cent, while disposable income dropped by 0.6 per cent - its fastest fall since 2013.

Darren Morgan, head of GDP at the ONS, said: "Robust consumer demand continued to help the UK economy grow steadily in the third quarter of 2016.

"Growth was slightly stronger than first thought, though, due to greater output in the financial sector.

“New figures on services also suggest that growth in that predominant sector of the economy continued into October, helped in large part by another strong showing from the retailers.”

A spokesperson for the Treasury said: “The fundamentals of the UK economy are strong, but there remain challenges ahead. The Chancellor set out, in the Autumn Statement, his plan to support a resilient economy that works for everyone by driving productivity and supporting working people, while maintaining fiscal discipline.”

Separate ONS figures showed that the UK current account deficit swelled back towards record levels, widening to £25.494bn from £22.079bn. The gap in the public finances is now 5.2 per cent of GDP, close to the high of 6 per cent hit in 2013.