It appears that it is not the British economy which is reacting negatively to Brexit, but rather the UK’s European trading partners who are worried about the consequences. The German IFO Business Climate Index, a measure of economic confidence, hit lows not seen since February, and posted its steepest monthly decline since spring 2012, when the Eurozone debt crisis was at its peak. Corporate expectations also fell to its lowest level for almost two years.
Contrast this with the UK, where retails sales released last week saw a marked upturn, and the labour market confounded experts by improving in July.
So much for the experts. It seems the British have decided to ignore economists and politicians who tell them that they should be worried, and instead businesses continue to hire and consumers continue to spend. How annoying that the people are not listening to the establishment doom-mongers! In the meantime, over in mainland Europe, the unionist are the ones who are concerned. We are not saying all is well in the UK economy – far from it – but it does appear that the scare stories peddled by the Remain side actually have to be believed to be borne out in reality, at least in the short term.