Originally forecast at 0.5%, GDP growth beat analysts’ predictions in Q3 of 2016 figures from the Office for National Statistics show.
The boost was attributed to steady consumer spending and stronger-than-expected growth in financial services, insurance and pension funds.
John Husselbee, head of multi-asset at Liontrust, said the growth and devaluation of sterling seen since the EU referendum in June go “hand in hand”.
He said: “Without really investigating the full details of the growth and how it’s broken down, generally speaking it’s most definitely in part due to the impact of sterling devaluation coming through.
“The devaluing of sterling is not great if you’re going on holiday but for exporters it’s increasing earnings, and when you increase earnings you increase share prices.”
However, ONS figures also reveal the UK current account deficit rose to record levels in Q3, widening to £25.5bn in July to September, up from £22bn in Q2 and that business investment growth stalled, growing at half the pace (0.4%) than originally forecast.
