GDP figures to show impact of Brexit vote

Third quarter GDP figures due out later are expected to show the UK has managed to avoid a major economic slowdown following the Brexit vote.

Experts are predicting growth of 0.3% and possibly 0.4% for the three months from July to September.

That compares to 0.7% for the second quarter of the year but is higher than the 0.2% forecast last month by the Bank of England (BoE).

The data from the Office of National Statistics (ONS), due at 9.30am, will provide the first broad picture of the economic impact of the decision to leave the EU.

Many economists initially expected it would plunge the UK into recession, but recent retail sales and employment figures have given some cause for optimism.

The central bank will decide next week whether to cut interest rates further from their all-time low of 0.25%, although this is now thought unlikely.

Prime Minister Theresa May has said she plans to launch formal Brexit talks between the UK and the EU before the end of March, kicking off a two-year negotiation process that may discourage many firms from investing.

Around the same time, British households are likely to be feeling the pinch from higher inflation, which jumped to 1% in September after a sharp fall in the value of the pound.

The BoE expects UK economic growth to slow to 0.8% in 2017, down from 2% this year.

Chancellor Philip Hammond will pay close attention to Thursday's GDP figures with a view to his first Budget announcement next month.

He has hinted that it will include an increase in public spending to boost the economy and counter any downturn caused by Brexit.