FIRST AIRED: August 25, 2016

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

We've got more news

Get our editor’s daily email summary of what’s going on in the world.

US Edition
Intl. Edition
Replay Program

Business

UK economy defies Brexit doom forecasts

Opening sequence

Opening sequence

Business

UK economy defies Brexit doom forecasts

0:00
17:44
More Info

COMING UP:UK economy defies Brexit doom forecasts

×

Transcript

00:00:01
>> The U.K. might not be headed for a Brexit bust after all. June's shock vote for an EU departure sparking weeks of woeful data, but recent numbers show something different. August retail sales figures out Thursday, they show stores having their best month since February. Reuters UK economic correspondent Andy Bruce has been reading the runes.
00:00:22
>> Retail sales data has been really strong. There wasn't much sign of a slowdown in consumer credit growth yesterday when the BBA released some of its credit figures. So far it looks like consumers have taken the Brexit vote in their stride.>> The rethink greeted with glee by Brexit supporters.
00:00:41
Tabloid newspapers talking of boom times ahead. Markets, too, shrugging off the gloom. UK shares now back above pre-referendum levels. The battered pound regaining a little strength. But just as the most gloomy forecast may have been premature, so too probably a confident boast of boom.>> I don't think I will have seen anything yet that will make them revise their forecasts.
00:01:05
In the longer term, Britain's economy will probably slow a lot because of the uncertainty around Britain's trading relationships in the future and companies making investment decisions. We still don't know anything about that, really. So to conclude, I think economists will still be feeling fairly confident in their view that the economy is gonna be set for a period of slower growth, maybe still even a recession.
00:01:31
>> Inflation one concern, prices already rising as weaker sterling makes imports more expensive, that could crimp consumer spending. September will also see detailed numbers on how manufacturing services and construction fared in July. It will be a long time before the optimists or pessimists can say for certain who's right.