UK economy grows faster than expected ahead of Brexit

Stockpiling by manufacturers ahead of Brexit helped the UK economy grow by 0.3% in the three months to February whilst unemployment across the UK falls.

The Office for National Statistics (ONS) pointed to manufacturers "changing the timing of their activities" as the UK's exit from the EU approaches.

Although growth was stronger than the 0.2% many economists forecast, Rob Kent-Smith, head of GDP at the ONS, said growth "remained modest".

On a monthly measure, the economy grew by 0.2%, faster than the 0% forecast.

The 0.3% rise in the three months to February, was the same as the three months to January, after previous estimate was revised higher.

"Services again drove the economy, with a continued strong performance in IT. Manufacturing also continued to recover after weakness at the end of last year with the often-erratic pharmaceutical industry, chemicals and alcohol performing well in recent months," said Mr Kent-Smith.

The ONS also reports that the UK's unemployment rate is now lower than any time since the end of 1975. Unemployment fell by 27,000 in the three months to February to 1.34 million. The number of people in work was also virtually unchanged at a record high of 32.7 million, with a jump of 179,000.

The figure has increased by 457,000 over the past year, all among full-time employees and the self-employed.

Average weekly earnings, excluding bonuses, had an estimated rise of 3.4%, before adjusting for inflation.

When adjusted for inflation, pay, including bonuses, increased by 1.5% on the year, the highest figure since the summer of 2016.

ONS deputy head of labour market statistics Matt Hughes said: "The jobs market remains robust, with the number of people in work continuing to grow.

"The increase over the past year is all coming from full-timers, both employees and the self-employed.

"Earnings have now been growing ahead of inflation for over a year, but in real terms, wage levels have not yet returned to their pre-downturn peak.

Employment Minister Alok Sharma said: "The UK jobs market continues to go from strength to strength, proving the underlying resilience of the British economy.

"But we must not take this for granted. We need to work urgently to get behind a Brexit deal that protects this jobs record and gives employers the certainty to continue to invest in their workforce and boost wages."