Prime Minister Theresa May has warned the UK's economy faces "difficult times" in the aftermath of Brexit

Mark Sands
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2016 G20 State Leaders Hangzhou Summit
Theresa May is attending her first G20 summit in China this weekend (Source: Getty)

Britain's economy faces "difficult times" Prime Minister Theresa May has cautioned, despite signs of a rebound in the aftermath of the UK's Brexit vote.

Last week saw a number of positive economic figures, including a substantial recovery in manufacturing after the June referendum.

However, speaking to reporters in China, May predicted the vote would damage the economy, and said her government maintained a cautious approach.

"There will be difficult times ahead," May told reporters on her way to a G20 summit in Hangzhou.

"We've seen figures giving some different messages in relation to the economy at the moment. I think the reaction of the economy has been better than some had predicted post- the referendum, but I won't pretend it's going to be all plain sailing."

Read More: Business confidence has shown a dramatic recovery according to one pollster

Her comments come after US President Barack Obama warned of trade with the UK “unravelling”, and said that America would seek to prioritise talks with Asia and the EU.

"What I committed to Theresa is that we will consult closely with her as she and her government move forward with Brexit negotiations to ensure that we don't see adverse effects in the trade and commercial relationship between the United States and the United Kingdom," Obama said.