Downbeat surveys suggest post-Brexit UK consumer spending could slow
While Britain’s economy outperformed all its advanced rivals after the Brexit vote, retail surveys are suggesting the possibility of a slowdown
London — The first post-Brexit vote cracks may be emerging in consumer spending, the cornerstone of Britain’s economy, with a series of downbeat retail surveys suggesting inflation pressures are starting to weigh on households. Britain’s economy outperformed expectations after the June 23 vote to leave the EU, ending 2016 with the fastest growth among all its large, advanced-economy peers. But economists polled by Reuters think the economy will slow markedly this year, mainly as consumer spending looks set to weaken under the strain of higher prices with the pound falling nearly 20% slump against the dollar. Gauges of retail sales — which can be volatile month to month and sometimes contradict each other — now point in the same direction, potentially an early sign that a slowdown may be starting. The British Retail Consortium (BRC) said on Tuesday that retail sales in cash terms rose at the weakest pace for any November-January period since 2008-09, when Britain’s economy was at a l...
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