British industrial output grew at the fastest rate since 1999 in the second quarter of this year, with ''very few'' respondents reporting an impact from the Brexit vote. But, as Hayley Platt reports, official figures showed Britain's trade deficit surged in June, with the economy sucking in a record amount of imports - including from the EU.
Latest data has painted a rosy picture of Britain's economy. Industrial output in the second quarter grew at the fastest rate in almost two decades. But that was before the UK voted to leave the EU. The impact from that - still to come. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "In respect of the number they've turned in .1 increase for the month, that is very much in line with what markets were expecting. It brings the annual change to 1.6 % and also for the second quarter it's a rise overall of 2.1 % and that's the best outcome since the third quarter of 1999, so it seems at least until we actually have that vote the UK economy was actually chugging away quite nicely." As for Britain's trade deficit, not so good. The figures surged in June as the economy sucked in a record number of imports. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "The UK effectively has a structural trade deficit and the weakness of sterling which is now going to feed through which could actually make our import bill that much bigger, at least over the short term until perhaps a higher level of exports kick in and actually push the trade deficit wider." Britain's high streets don't appear to be suffering - even after the Brexit vote . The latest survey showing a bounce back in July. Summer sales, promotions and good weather helped push retail spending 1.9 percent higher than a year earlier - its biggest rise in six months. It was a sharp increase from the 0.2 percent rise in the run up to the Brexit vote, when the mood and the weather were both a bit gloomy.