U.K. Economic Data Shuts Down Bearish Expectations From Brexit
Since the United Kingdom voted to exit the European Union on June 24, 2016, financial reactions have been more stable broadly speaking compared to expert estimates, such as George Soro's "Black Friday" prediction.
Although the United Kingdom will not actually leave the European Union until over a year from now, many believe companies and investors will prepare for the exit by beginning to relocate their business and investments away from the United Kingdom.
So far, the United Kingdom has reported significant stability in recent key economic metrics:
- August 17: July claimant count declined by 8.6 thousand vs. an expected rise of 95,000.
- Unemployment rate was reported at 4.9 percent and a June average weekly earnings at 2.4 percent — both in line with estimates. Average earnings came in above last year's earnings.
- U.K. retail sales rose 1.4 percent sequentially vs. a 5.9 percent growth year-over-year.
August 16: July Inflation for the U.K. rose to 0.6 percent, up 0.6 percent year-over-year.
Additionally, the FTSE 100, an index that measures the 100 largest companies on the London Stock Exchange, has increased 7.72 percent since the Brexit Vote.
Although one or two key metrics are not as strong as they were last year, the financial and economic reaction to the Brexit vote is far from the dark estimates many investors originally expressed.
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