TAIPEI, Taiwan, December 6, 2018 (Newswire.com) - With less than four months until Britain is due to officially leave the European Union, the UK’s economy is showing signs of weakness. After many long months of hard negotiations, a draft Brexit deal has been devised and UK parliament will vote on whether or not to approve the deal in what has been referred to as a “meaningful vote” on the 11th of December but Burton Mills analysts say Prime Minister Theresa May faces strong opposition from within her own party and the possibility of Britain leaving the EU without a deal cannot yet be ruled out.
But as Brexit looms, the UK’s economy is showing what analysts at Burton Mills believe may be a hint of what’s to come after the country leaves the European Union.
Burton Mills analysts say UK manufacturers could be facing their slowest year since 2015 next year as Brexit uncertainty weakens international demand and companies are preparing themselves for the possibility of shortages of certain materials. The prediction is upheld by recent quarterly data which shows that growth in the UK manufacturing sector has continued to lose momentum throughout this year.
British consumer confidence has dipped to its lowest point in almost a year as Brexit uncertainty weighs on the country’s economic outlook. Although strong consumer spending helped to boost economic growth during the middle of this year, the economy is slowing and the Bank of England (BoE) recently reported the lowest level of consumer lending since 2015.
BoE governor Mark Carney recently stated that the UK economy could contract by as much as 8 percent in the event of a disorderly exit from the EU.
Source: Burton Mills