Two trends propping up economic growth in Britain have suddenly reversed as more consumers realise the damage from Brexit is permanent, not transient
Reuters / Arnd Wiegmann
- The UK savings rate suddenly looks like it is going to go up.
- That's because Brits are not taking on new debts.
- Credit Suisse argues that consumers were willing to tolerate the short-term negatives of Brexit, but they are not going to finance the long-term.
- People are "realizing that the damage to their real incomes from the Brexit vote is permanent, not transient," CS says.
- None of this looks good for economic growth.
British consumers have stopped taking on more debt and started saving their money again, in a sudden reversal of two trends that propped up economic growth in Britain over the last year. If the trend continues — and Credit Suisse analysts Neville Hill and Sonali Punhani told clients recently they believe it will — it will hurt one of the main drivers of GDP growth in the UK: consumer spending.
Since the EU Referendum of 2016, Brits have done two things with their money:See the rest of the story at Business Insider
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