London: UK consumers’ view of the economy’s long-term prospects have deteriorated since the country voted in June to leave the European Union.
IHS Markit’s index of economic optimism over the next 10 years dropped to minus 18.4 per cent in November from minus 11.1 per cent in August and minus 3.5 per cent in July, it said on Tuesday. The survey asks people whether the UK’s prospects have gotten better, worse, or stayed the same as a result of the Brexit vote.
In the short-term — over the next six months — the index was little changed, at minus 40.7 per cent compared with minus 42.7 per cent in August. While the economy has performed better than anticipated since the referendum, expanding 0.5 per cent in the third quarter, Markit said the report shows that pessimists still outnumber optimists to a “significant extent.”
“The latest survey highlights how Brexit is expected to carry a higher than previously-thought cost in economic terms,” said Markit Chief Economist Chris Williamson. “On average, people have become considerably more pessimistic about the impact of the decision to leave the EU on the economy over the next decade.”
