Caution was the mood for British householders and companies for July with official figures showing a decrease in borrowing and spending. It is becoming apparent that Brexit is cooling the economy however the full short term effects are still uncertain. Mortgage approvals fell to an 18-month low in July, and consumer credit was 36% lower in July than the 2016 average.
Manufacturing output fell its largest this year dropping 0.9% in July when compared to June according to the National Statistics Office.
Mario Draghi, the European Central Bank President, is pushing for the EU to take a harder stance with the UK following Brexit. He has said that they should not be allowed access the single market currently available unless it abides by the free movement of labour.
Aldi is planning to invest up to £300m on stores in the UK. However, the company had a drop in profits due to the grocery price war ongoing in Britain. Sales for the year to December 31st 2015 were £7.7bn up 12% YoY. However pre-tax profits dropped 15.2% to £212.6m. Aldi’s CEO for UK & Ire said increasing market share was more important than increasing profits in the short-term. 70 new stores are in the pipeline for 2017.
BHS, the once-great British high street store has closed its doors after 88 years. The store collapsed in April taking with it, 11,000 jobs and 22,000 pensions with a pension pot deficit of £571m.
UK mortgage approvals fell in July to an 18-month low following the immediate aftermath of Brexit. The Council of Mortgage Lenders said that lending increased again in August as the country came to terms with the effects of Brexit.