UK economy stays resilient despite shock of EU exit – Telegraph.co.uk

Economists expect Markit’s gauge of manufacturing activity to rise to 49 in August, after dropping to a three-year low of 48.2 in July.

While still below the 50 level that signals growth, economists said the data pointed to a slowdown rather than a collapse in activity.

Several analysts expect the manufacturing sector to eke out growth in August, as exporters benefit from a weaker pound.

Alan Clarke, an economist at Scotiabank, said: “Many businesses are realising that the pessimism has been overdone and the vote to leave the EU hasn’t caused the sky to fall in.”

GfK’s latest consumer confidence survey is also expected to rise, following July’s dramatic fall – the biggest in 26 years.

Despite the drop, July’s survey suggested Britons were not yet squirrelling away their cash in anticipation of a downturn.

UK economy stays resilient despite shock of EU exit – Telegraph.co.uk

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