2016.08.2308:02:00UTC+00Briferendum Aftermath Series: Uk’s Economic Surprise Index Defies Brexit

The UK economy has been beating expectations so far. While economists have been expecting a major downturn, the economy has been standing out pretty well, except for the initial downbeat economic sentiment reading. The economy has been fairing so well that the Citi’s economic surprise index has moved to a fresh 3-year high after the release of last week’s data. It has jumped from less than 50 to 72.2 after last week’s data releases.

• Earlier this month, BRC retail sales monitor showed sales grew by 1.1 percent in July, while expectations were for a decline.
• Last week, unemployment report showed that the rate is steady at 4.9 percent. Average earnings including bonus rose by 2,4 percent.
• Last Thursday, retail sales report showed, in July, sales grew by 1.5 percent.
• Even today, Industrial trend survey report came much better than expected.

Though it is too early to conclude on the impact of the Brexit, it would be fair to say that Uk economy is holding up pretty well in the immediate aftermath.

These better than expected results along with weaker USD has pushed pound higher, which is currently trading at 1.319 against the dollar.