United Kingdom and Gibraltar European Union membership referendum
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"Get ready for Brexit" is the campaign by which people in the UK are to prepare for their country's exit from the EU. For the associated hamster purchases their money is less and less. Because the uncertainty weighs on the British pound. For the first time since January 2017, the currency has fallen below the $ 1.20 mark, with a low of $ 1.1994, but the pound is holding up better against the euro.
In the UK, a group of parliamentarians want to oppose the hard Brexit course of Prime Minister Boris Johnson. A legislative initiative is intended to force a renewed postponement of the Brexit appointment, unless a new exit agreement with the European Union is found. It is speculated about new elections.
Uncertainty weighs on people in the UK. One in five households in the UK, according to a survey by Barclaycard, increasingly buys consumer goods to cope with bottlenecks after Brexit. At the top of the list are canned goods, household goods and dried foods.
Not urgently necessary acquisitions postponed
How reliable this survey data is is unclear. One thing is clear: British consumers have been a pillar of the country's economy since the Brexit referendum in 2016 and made up for some of their lost spending on corporate spending.
In the meantime, however, as the figures suggest, consumer spending in retailers is declining, but many Britons are refraining from making much-needed purchases. Revenue growth had dropped to zero in August, after having risen as low as this month in July, at just 0.3 percent, the retailer said. Looking back over the past 12 months, revenue growth slowed to 0.4 percent, the lowest since data collection began in 1995.
Household restraint, according to economists, increases the risk of recession. The British economy has already shrunk in the second quarter. If there is a further decline in the current summer quarter, the UK is in recession. While industry accounts for only about 10 percent of gross domestic product, other industries depend on it, including business services providers.
The economic climate in the UK is as bad as it has been for almost seven years because of the impending hard Brexit. The corresponding index fell in August by 1.8 to 92.5 points, as the European Commission determined. For service providers, retailers and consumers, the mood deteriorated noticeably. In the industry, she brightened up a bit last. However, if the EU leaves the UK without a divorce treaty, companies are threatened with the disruption of key supply chains.