Stockpiling boosted UK economy ahead of initial Brexit date
The Associated Press
May 10, 2019 01:44 AM
FILE – In this Thursday, April 11, 2019 file photo, protestor flags fly opposite the Houses of Parliament in London. The British economy is likely to weaken as firms stop ease up on Brexit preparations now that Britain’s departure from the European Union has been delayed by months, the Bank of England said Thursday, May 2, 2019.
Frank Augstein, File
Official figures show that the British economy expanded by a solid quarterly rate of 0.5 percent in the first three months of the year as firms geared up for the long-anticipated Brexit date.
Much of the growth reported by the Office for National Statistics on Friday was due to firms stockpiling raw materials and products ahead of Britain’s scheduled departure from the EU on March 29 — manufacturing output expanded by a hefty 2.2 percent.
Overall growth was up from 0.2 percent in the previous quarter.
After Parliament rejected the Brexit deal Prime Minister Theresa May negotiated with the EU, the Brexit date was extended to Oct. 31. As a result, economists expect growth to moderate in the second quarter as firms ease their stockpiling.