January 18, 2017

CONFIDENCE: British Consumers Keep Economy Humming Months After Brexit Vote.

British officials and most economists thought a vote to quit the European Union would persuade Britons to squirrel away more cash, causing growth in the wider economy to tail off. Some expected Britain might even tip into recession as uncertainty over the country’s future ties to its biggest trading partner paralyzed companies and households.

Instead, consumers embarked on a spending run in the second half of 2016 that underpinned a robust expansion. The International Monetary Fund said Monday it estimates the U.K. grew 2% for all of 2016, comfortably above its 1.6% growth forecast for the U.S.

This consumer resilience was unanticipated by economists, highlighting the difficulty of predicting how big, political surprises affect short-term growth.

It feels nice, getting the chance to win your country back.