Consumer borrowing eased back last month as inflation's upward march forced UK shoppers to rein in their spending, according to new figures.

Britain’s economy is likely to feel the impact of the Brexit vote in the coming years after an initial period of resilience, chancellor Philip Hammond said as he spelled out his plans to steer the British economy through its departure from the EU.

Output in Britain's manufacturing sector reached its highest level for more than two years as the industry continued to bounce back from a post-Brexit vote slump.

The UK’s decision to quit the European Union has already begun tipping its economy into a mild recession, according to economists in a Reuters poll, most of whom said the Bank of England would chop interest rates again in November.

British mortgage lending grew at the weakest pace since 2012 as a new tax on landlords took effect, and uncertainty about Britain’s future in Europe dampened other borrowing, too.