He expects the economy to slow down as businesses hold back investment, however, while inflation caused by the fall in the pound will hit shoppers.

In the longer-term “many opportunities beckon in markets outside the EU, but negotiating favourable access to them and reorienting the economy to take advantage of them will take years. In the meantime, such significant change is likely to prove disruptive,” said the UBS economist.

Part of the current positive sentiment may be because exporters are already benefitting from the fall in the pound while importers have yet to pass on the extra costs to consumers.

“One possibility is that the economy is currently in a temporary 'sweet spot' in which some of the positive developments which we expected to cushion the impact of the referendum have been felt before the major adverse consequences,” said Jonathan Loynes at Capital Economics.

“But that does not mean that the economy’s health is certain to deteriorate dramatically from here. For a start, while inflation is going to rise, we continue to think that the magnitude and duration of the increase will be relatively limited.”