Business activity in the euro zone stayed robust in August as it outpaced Britain, where an economy increasingly bogged down by Brexit worries lost momentum, surveys showed on Tuesday.
Growth in the euro zone slowed only marginally from the blistering pace set in the spring, according to a Purchasing Managers’ Index. An equivalent reading for Britain was the lowest since last September, shortly after the referendum vote to leave the European Union.
“The story in the next couple of years is that by all probability – unless we get an external shock – the euro zone recovery is for real. I don’t see any reason why this will peter out anytime soon,” said Erik Nielsen, group chief economist at UniCredit.
“Where would growth come from at this stage in Britain? There is erosion of real income because of the inflation numbers and the uncertainty means investment will not play a role until you get some clarity on what is going on (about Brexit).”
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