Consumer confidence in the UK is at its lowest level since the immediate after effect following the vote to leave the EU. The consumer confidence index fell to -10 in June.
Sterling has dropped further against the euro and only adds to the gloom for the British economy which grew by just 0.3% in Q2, following a dismal Q1 growth of 0.2%. Household spending reported negligible growth. Growth in retail sales slowed in August at their fastest pace in over a year.
The UK was dealt a blow by Japan when they sought to replicate a trade deal similar to the newly negotiated EU-Japan trade deal. A Japanese official advised that ‘substantial progress’ can’t be made with the UK as negotiations are ongoing with the EU around the deal, and that the UK was still uncertain over its future once out of the EU.
UK construction activity has reached a one year low with the impact likely to be felt by Irish exporters in the pre-cast concrete, timber and engineering services. The sector makes up 6% of economic output from the UK.
Consumer confidence has fallen with the PMI dropping to 51.1 from July’s 51.9. Anything above 50 shows growth, however the drop is likely to be of concern to the Bank of England.