Reuters - Video

Edition: US | UK | IN | CN | JP

Video

UK consumers upbeat despite Brexit woes

Monday, October 17, 2016 - 01:42

British consumers were their most confident in five years in September, a survey has showed. But, as Hayley Platt reports, the upbeat mood was not shared in London where most voters opposed leaving the European Union in June's Brexit referendum.

▲ Hide Transcript

View Transcript

More than half the country voted for Brexit. So perhaps they're feeling pleased and optimistic. Consumers were certainly at their most confident for five years in September, according to a survey by Deloitte's. And it's helping keep Britain out of recession. SOUNDBITE (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING: "If they're continually happy to buy the new washing machine, maybe purchase a new car and continue to spend into Christmas. As long as inflation is likely to run higher and we do think it will do in the beginning of the New Year, consumer spending will stay OK but if inflation really kicks up in the early part of 2017, that's going to put a lot of pressure on people's pockets." The mood didn't stretch to London though, where many had voted to stay in the EU. Worries persist that the government may choose a so-called 'hard' Brexit with no access to the single market. That would hurt the financial sector - although there's some talk Britain may pay the EU for access. SOUNDBITE (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING: "I think it could work, I don't know how politically viable it really is. If the numbers that this report is talking about, billions and billions and billions of pounds being spent on bankers as opposed to the NHS as the leave plan put forward that they would do, I don't think that's going to be politically welcomed." Briton's are already having to get used to a weaker pound. It's fallen nearly 20 percent against the dollar since the Brexit vote - making holidays abroad less attractive. The Bank of England says it's acted as an important shock absorber for the economy. Prime Minister Theresa May may need a bit of protecting when she heads to Brussels this week. Her European counterparts have expressed irritation about the time Britain is taking to start the exit process. ///

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

UK consumers upbeat despite Brexit woes

Monday, October 17, 2016 - 01:42