How Brexit is affecting the UK economy

A little less than a month after the release of Britain From the European Union, East Effects of Brexit Start appearing on the British economy.

Not just an epidemic, therefore, back January preliminary PMI index Last week he noted the general situation in the manufacturing and service sectors, which is below the figures for the end of 2020 and the eve of the day.

Brexit: First Impact on the British Economy

Of course, Kovid continues to bite the United Kingdom, with the new home version, which has brought daily deaths to over 1,200, despite Taro lockdown Applied by Prime Minister Boris Johnson in less than a year.

And under this lens we can read the initial PMI indices for January related to the British economy, in January: the overall index at 40.6, the manufacturing index at 52.9 and the services PMI at 38.8, all Below last December’s estimate And the consensus of eve.

However, Brexit edition Now it seems to forcefully enter the equation. Developments on the epidemic front, even today, remain the primary concern for British business clothes, but most of the difficulties faced by companies in recent weeks are due to divorce with the European Union.

in construction area, For example, the gods emerge Supplier shipping bar (“Supplier delivery time”) is on the rise: It is a fact that IHS Markit – the company that manages the Purchasing Managers Index (PMI) – is usually associated with an increase in demand, and which leads upward But it is read positively. But not during the epidemic season.

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In fact, in recent months, lags behind shipments Supply chain agony Reasons for the spread of the virus: a negative figure, which places the United Kingdom in an unsafe position in relation to some of its main competitors, such as France, Japan, the United States, Germany and Australia.

But the epidemic is a global phenomenon, and the reasons for the UK’s particularly poor performance in manufacturing should be sought elsewhere: according to IHS Markit analysts more precisely in Brexit, because of tariffs in trade with London and Brussels Despite the absence, the UK faces delays border control.

Brexit behind the decline in exports of services

Another negative peak that can be largely attributed to Brexit is relatedExport services (“Service Export Order”), which sees the United Kingdom at 39.4, which is below the 50 threshold, which acts as a watershed between growth and contraction.

A huge figure, especially when compared to International competitors: United States at 51.4, France at 44.9, Germany at 42.2 and Japan at 42.1.

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About the Author: Forrest Morton

Organizer. Zombie aficionado. Wannabe reader. Passionate writer. Twitter lover. Music scholar. Web expert.

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