Whether having voted Remain or Leave, the lack of meaningful progress in Brexit talks and the effect this has on the UK economy is not good news.
As recent economic data releases reveal, both consumers and businesses are adapting to uncertainty by changing their behaviour and reducing their spending. This is hurting economic growth.
The old adage “It’s the economy stupid” guides many investment professionals’ forecasting methods and suggests leaving short-term political noise to one side. But in the case of Brexit preparations, politics has become a key influencer of current economic behaviour, with signs of damage borne out by an ever-wider array of corroborating data, particularly among the business community.
