Britain’s post-Brexit market boost as Germany suffers summer slump
Brit retailers reported their strongest sales in six months as German firms are 'suddenly waking up to Brexit reality'
NEW figures show Britain’s economy is bouncing back after Brexit – as Germany suffers a slump.
A survey of business confidence showed German firms had 'fallen into a summer slump' with analysts forecasting weaker growth for the country’s economy in 2017.
But while the Germany’s economy suffers a wobble retailers in Britain reported their strongest sales in six months this month.
Business groups in said Brit shoppers were flocking to the high street with Confederation of British Industry figures showing its retail sales volume index rose to +9 - its highest since February and a massive increase from -14 in July.
But it is worrying news for Angel Merkel as economists said German businesses had 'suddenly woken up to Brexit reality'.
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The influential Ifo economic institute's closely-watched index fell to its lowest point since December 2014.
Ifo president Clemens Fuest said: “The German economy has fallen into a summer slump.”
Manufacturers, retailers and wholesalers all reported falling confidence in August with chemical and electrical firms among the gloomiest in industry with food and beverage firms the least positive among retailers.
Economist Carsten Brzeski at ING Diba bank said: “Today's Ifo suggests that German businesses have suddenly woken up to Brexit reality.”
Stephen Brown of Capital Economics added: “There is a risk that the Ifo will fall further.”
Meanwhile in Britain it was revealed the employment rate reached a record 74.5 per cent in the three months leading up to the June 23 vote.
The UK's net wealth hit £8.8trillion last year - with the average household worth a whopping £378,000, the reports.
And the latest house prices data showed warnings of a housing market crash after Brexit were being defied, with shares rising in housebuilding firms.
The UK’s national output increased by 0.6 per cent between April and June, while 19-country single currency bloc grew by just 0.3 per cent.
Eurozone growth halved from the 0.6 per cent growth it saw in the first three months of the year as France’s economy flatlined.
Overall the EU grew by only 0.4 per cent between April and June, Eurostat figures showed.
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