The UK economy was to suffer a sharp drop in growth after voting to leave in the Brexit referendum - this was the sentiment of the Bank of England. Although there was an immediate fall in the value of the Pound, according to the ONS the UK's construction and manufacturing industries have both grown in December 2016.
Other ONS data showed the UK's trade deficit had decreased also during December.
Since the UK decided to leave the EU, the FTSE 100 has shown strong growth. This has been driven by the low value of the pound, which helped the exporters within the FTSE 100. Also, President Trump's promise of a $1 trillion infrastructure spending has given a boost to sectors such as mining.
What's next for the UK economy?
Although there is good data coming out regarding the UK economy, the UK hasn't left the EU yet. So it's important that predictions about the future state of the UK economy should be done with care. However, according to PwC the UK could be the fastest growing G7 economy by 2050, providing the UK makes the right trade deals. To read more about this topic, check out this article from The Guardian.
How does this affect our trading?
Once the UK leaves the EU there would be a few things to consider before making a trade decision. The main thing to consider is whether the UK has some access to the single market. If the UK does then this would be considered a positive at least for the short/medium term. For the long term, as PwC acknowledged this could depend on the future trade deals the UK makes. PwC made this forecast with the assumption that there would not be any major geopolitical issues.
Brexit has produced some good trading opportunities, and it seems more opportunities may present itself in the near future. Do your research before investing.