Exports put UK factories on best run for 20 years

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

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 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. 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.’