LONDON - Moving slowly in the fog of Brexit and slowing global growth, Britain’s economy is increasingly reliant on consumers and their spending as business investment and exports fade.
On Wednesday, the European Union delayed Britain’s departure from the bloc until the end of October, but scepticism runs high that lawmakers in London can form a consensus over Brexit. The value of business investment lost in Britain’s economy since the June 2016 referendum is roughly 10 billion pounds compared with its simple trend growth from late 2009 to the second quarter of 2016.The extent of stockpiling going on among British manufacturers looks likely to limit the extent of any potential rebound in investment.
Economists worry that the recent drive to build inventories has brought forward output, heralding a downturn later.WILL CONSUMERS KEEP SPENDING?