Britons’ long-term economic outlook weakened since Brexit

PARIS / AFP

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 percent in November from minus 11.1 percent in August and minus 3.5 percent 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.
With the pound falling, one issue that may be worrying consumers is the outlook for inflation, which the Bank of England forecasts will accelerate through 2017, eating into real incomes. UK. manufacturers expect to jack up prices in the coming months, the Confederation of British Industry said on Tuesday.
In the short-term—over the next six months—the index was little changed, at minus 40.7 percent compared with minus 42.7 percent in August. While the economy has performed better than anticipated since the referendum, expanding 0.5 percent 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.”