Employment, real estate, consumer … More than a month after the surprise decision by the UK to leave the European Union, the signs of a slowdown in the UK economy are multiplying .
the greatest economists had warned of the negative consequences of Brexit on the British economy. After the surprise vote in favor of the British Brexit June 23, fears recognized forecasters begin to realize. Several recently published indicators are worrisome indeed.
● fall in the number of job vacancies
The number of vacancies in the City of London recorded a sharp decline of 12% in July, according a study by the consulting firm Morgan McKinley. This decrease reflects the climate of uncertainty after the British decision to leave the European Union, pushing for caution companies, particularly in the area of finance predominant in the business center of London.
“After Brexit, the number of vacancies in the City declined
More bad news on the employment front: a survey of job insecurity shows that young people s ‘worried about their job prospects. Meanwhile, companies that identify online jobs are seeing a sharp drop in the number of ads. Some experts even suggest a halving of the number of deals, unusual and troubling situation according to them.
● The real estate market plunged
This basic sector of the UK economy, booming in recent years, is heavily penalized by the Brexit. A survey by the RICS (the representative organization of the real estate sector) reports that the number of buyers continues to restrict. After a 36% decline in June the number of buyers has decreased by 27% in July compared to last year. The number of homes for sale has also decreased, from 34% in July, housing prices fell by 5% compared to 2015. A decline which reached 6% on the office sector in The City, according a study published by CBRE.
Meanwhile, real estate funds gels multiply. Unable to cope with requests for frightened investors wishing to recover their shares, many funds invested in UK property were forced to close temporarily. worrying sign, this phenomenon had not been seen since the 2008 crisis.
● The consumer price increase
The pound continued to fall against the dollar and the euro since the vote on the Brexit. A decline which results cause imported inflation, because of higher prices for many goods purchased abroad.
● Spending cuts
The consumer has suffered from this decision : attendance at shopping centers has decreased and the turnover of the shops. “Even though the weather was more favorable year, the combined decline in attendance and sales in stores can not be explained only by the weather,” said Diane Wehrle, specializing in the analysis of data on retail sales. Attendance shopping centers remains well below its level of last year.
● Dark perspectives
The BoE expects a “significantly lower growth” now that the country is towards the EU exit including expects growth of only 0.8% in 2017, against 2.3% expected previously. The monetary institution with the judge announced measures, but the country should escape recession.
Even pessimism on the part of economists. The majority of 60 economists polled by Reuters expect a contraction of the economy in the next two quarters. Moreover, the company manufacturers and vehicle dealers claim that its members are pessimistic about the prospects for growth, employment and investment. In addition, business surveys provide a slowing economy in the coming months.
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