Team GB's Olympics gold rush could boost UK economy

Team GB’s hefty medals haul over the weekend could bring a short-term fillip to the economy as the Olympic feelgood factor spreads across the country, economists and analysts said today.

“You always find in moments of glorious euphoria that it does have a very positive effect,” Panmure Gordon’s David Buik said.

Britain’s dominant services sector will be the chief beneficiary, he added, with more people heading out to celebrate successes such as Mo Farah’s 10,000 metres triumph.

While not a silver bullet for the high street’s challenges, a much-needed boost for retail is on the cards, Shore Capital’s Clive Black added.

“What it does undoubtedly do… is improve the mood and sentiment of folks, which were clearly unsettled by the referendum.”

The impact is likely to be short-lived though as worries over Brexit remerge, experts warned.

“Further out what’s important is how employment holds up… what happens to consumer purchasing patterns and concerns over sterling falling sharply,” said IHG Markit’s Howard Archer.