Skip to main content

Brexit Watch: Is the economy succumbing to Brexit worries?

The disappointing tone of this week’s survey evidence and hard economic data has raised concern that the economy is now succumbing to Brexit fears. However, there were probably some non-Brexit related factors at play. And growth should still see some acceleration ahead. Coming on top of falls in the manufacturing, construction and service sector Markit/CIPS PMIs earlier in the week, the disappointing tone of the latest official data on industrial production and construction made a significant rebound in GDP growth in Q2 more difficult to achieve. Admittedly, the all-sector PMI still points to quarterly growth of around 0.5%. But on the basis of the hard data, even growth of 0.4% would require a monthly rebound in growth in June.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access