UK economy weakest since 2012 as Brexit fears mount – EC Survey

The European Commission’s (EC) Economic Sentiment Indicator (ESI), a gauge of Britain’s economic health, showed that the UK’s economic health deteriorated to almost at the weakest levels in seven years in August, in the face of escalating Brexit crisis.

Key Details:

“The gauge for Britain fell to 92.5 from 94.3 in July, its lowest level since September 2012.

The drop came despite an uptick in morale in the struggling manufacturing sector, toward which the ESI is heavily weighted.

Overall, the ESI added to signs that Britain’s economy could struggle to rebound meaningfully from its contraction in the second quarter, the first time it shrank since 2012.

The European Commission said inflation expectations among British consumers hit their highest level since 1990, possibly reflecting the pound’s fall to its lowest level in three years against other currencies in the first half of August.

The public’s expectations for the economy were the lowest since December 2011, the survey showed.”