Moody's: Construction growth and strong retail demand provided a boost to UK economic growth over summer

In its latest report titled "UK Brexit Montior," Moody's Investors Service's Managing Director Colin Ellis said that the construction growth and the strong retail demand provided a boost to the UK economic growth over the summer.

Key quotes

• Although the Brexit vote in June 2016 has weakened UK GDP growth, the impact has so far been less severe than originally forecast by the HM Treasury.
• Although retail sales volumes are elevated, consumer service activity remains muted.
• Surveys of hiring intentions suggest employment growth could flatten in the coming months.
• The risk of the UK leaving the European Union without an agreement to replace existing arrangements has risen materially in recent months.
  • This outcome would damage the UK economy and be credit negative for a range sectors and debt issuers in the UK and Europe.