UK economic growth to slow in 2017, NIESR predicts

UK economic growth accelerated in the three months to January from the previous quarter, driven by strong consumer spending and improvement in production industries.

The NIESR said it expects gross domestic product rose 0.7% in the quarter to January, compared to 0.6% growth in the three months to December.

However, the research institute said it sees economic growth softening to 1.7% this year as rising inflation weighs on consumer spending. GDP rose 2.0% in 2016, easing from 2.2% in 2015 and 3.1% in 2014, according to the latest official figures.

A weaker pound following the June Brexit vote has pushed up import costs, sending inflation higher.