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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.