Brexit has had a smaller than expected impact on the UK's GDP

Chancellor Philip Hammond says the British economy is showing "resilience"...

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File photo of EU and UK flags above the EU Commission offices in Westminster, London | Image: Stefan Rousseau / PA Wire/Press Association Images

The UK's shock decision to leave the EU has had a smaller than expected initial impact on economic growth.

The figures for July to September were down from the 0.7% growth recorded in the second quarter of 2016 - however economists had forecast this morning's figure would be closer to 0.3%.

The year-on-year GDP increase was 2.3%.

Chancellor Philip Hammond, who is due to announce his first Budget next month, said the data showed the British economy's "resilience" to the challenges the country faces.

He said: "The fundamentals of the UK economy are strong, and today's data shows that the economy is resilient.

"We are moving into a period of negotiations with the EU and we are determined to get the very best deal for households and businesses.

"The economy will need to adjust to a new relationship with the EU, but we are well-placed to deal with the challenges and take advantage of opportunities ahead."

Additional reporting by IRN