Brexit Shockwaves Hit UK Consumers, Companies Brace for Slowdown

Shockwaves from Britain’s vote to leave the European Union are reverberating through the economy, with surveys published on Thursday showing a dive in consumer confidence and a slowdown in construction.

Preparing for a Brexit-related slowdown, Lloyds Banking Group (LLOY.L) said it would cut 3,000 jobs and one of Britain’s biggest car dealerships, Inchcape, predicted growth in new car registrations would slow.

Just over a month after the referendum, the latest signals of an economic slowdown are likely to fuel expectations of action from the Bank of England on Aug. 4, when many economists believe it will cut interest rates and might start buying bonds again.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.