Economy bounces back post Brexit

29 August 2016 - Janet Bird

british economy brexit

The wave of doom and gloom over Britain's economic future which swept the country in the immediate aftermath of the Brexit vote appears to have been misplaced.

Economists have revised their downbeat forecasts for the rest of the year and 2017 after a string of indicators show the economy bouncing back better than expected, with growth in the manufacturing and building sectors and a rise in consumer spending.

A survey of manufacturers by the CBI revealed the weakness of the pound in the wake of EU vote boosted exports of manufactured goods to their highest level in two years, offsetting domestic market uncertainty.

And while share prices in the building industry dived ahead of the Brexit vote and in the week following, Britain's biggest housebuilder Persimmon says trading since then has been strong and, after a short period of wariness, customer interest has increased from a year earlier.

There has been good news too for supermarkets, with the warm weather in August and an Olympics generated feel good factor leading to their strongest performance since March.

Market analysis firm Kantar Worldwide said the supermarkets enjoyed a 0.3% rise in sales in the 12 weeks to 14 August, with purchases of ice-cream and lollies rising by nearly a quarter towards the end of the period and the number of chilled drinks sold going up by ten percent as temperatures soared.

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