Brexit Plows into British Consumers, Economy to Spiral Down

[marmar]

Brexit Plows into British Consumers, Economy to Spiral Down
by Wolf Richter • July 8, 2016


[font color="blue"]Consumer confidence plunges the most since 1994.[/font]

Britons’ economic sentiment, already sagging since the summer of 2014, has dropped after the Brexit vote at the steepest rate since 1994!

We can’t blame them. The pound sterling plunged 25% over the last 12 months in anticipation of the Brexit vote, and in its aftermath. A bevy of usual suspects, including Goldman Sachs, Deutsche Bank, and Citigroup, are now proclaiming that the pound could fall another 7% to 11%. Deutsche Bank figures the pound, now at $1.29, could drop to $1.15 by the end of the year.

The initial plunge after Brexit was a reaction to Brexit, they say. But now there’s a second wave of selling on the way in reaction to the Bank of England’s reaction to Brexit.

Forecasters have a history of being wrong, but the current level is real. The destruction of the pound may be good for UK exporters, but it’s terrible for consumers. They buy a lot of imported stuff, and that stuff is about to get more expensive. And forget about going abroad this summer. Can’t afford it anymore. .............(more)

http://wolfstreet.com/2016/07/08/british-consumer-confidence-plunges-post-brexit-economy-to-spiral-down/

[BlueCaliDem]

1. I hope they now understand the impact of "elections have consequences". Being nativist is archaic

and no longer has any place in this globalized world economy.

I hope this teaches the young Brits a lesson, too. GOTV because you're gonna get the government, the economy, the employment/unemployment you've voted/not voted for. So set the iphone down for a couple of minutes and GOTV!

[Doodley]

2. The same thing was said about the people of USA

after voting Bush 2 into office, not once, but twice.

[BlueCaliDem]

3. So painfully true. I remember.

[marmar]

4. True to an extent, but that's oversimplifying the vote.