Brexit is damaging the British Pound, with the currency falling below the $1.20 mark for the first time since January of 2017 – $1.1994 – to be exact. The British Pound is faring a bit better against the Euro. With a legislative initiative, a further postponement of the Brexit date is to be forced, as far as no new resignation agreement with the European Union is found. There is even speculation about new elections.
Stockpiling The Necessities
The people in Great Britain, with everything up in the air as it is, are stockpiling goods to prepare for import bottlenecks after Brexit. One in every five households in Great Britain is buying more everyday goods in case Brexit leaves them going without. Canned goods, household goods and dried foods are topping the shopping lists of these British subjects.
What is clear is that, at worst, the free movement of goods between Britain and the EU could collapse. To bridge problems in the supply chain, many companies have already replenished their stocks, logistics professor Christian Kille told the Süddeutsche Zeitung – including the pizza chain Domino's. "In England, every chicken coop is being rented to stockpile products. Despite all the precautions, Kille told the newspaper, people must prepare themselves to be unprepared for food, too. "They must be prepared to eat more canned and deep-frozen foods in the future," Kille told the newspaper.
Only What You Need
Thanks to a report by Spiegel Online, we learn that, although British consumers have been bolstering the economy as of late offsetting some of the losses in corporate investment, according to figures on consumer spending in the retail sector, many Britons are foregoing purchases that are not urgently needed.
Sales growth fell to 0 in August, having already recorded its lowest month-on-month increase of 0.3% in July, the retail association said. Over the past 12 months, sales growth has slowed to 0.4%, the lowest since the association began collecting data in 1995.
Economic experts say that household restraint increases the risk of a recession. The British economy already shrank in the 2nd quarter. If it continues the decline, the UK will be in a recession.
In This Economy?
The economic climate in Great Britain is worse than it has been for almost seven years due to the threat of a hard recession. The corresponding index fell in August by 1.8 points to 92.5 points, according to the EU Commission. The mood among service providers, retailers and consumers deteriorated noticeably. In industry, the mood has brightened somewhat recently. However, if Great Britain leaves the EU without a divorce agreement, companies are threatened with the interruption of important supply chains.
Addendum – This Just In!
Now that Boris Johnson has lost his majority as Tory Phillip Lee defected to the Liberal Democrats, the British Pound actually goes up as the government in Britain loses power. This is most likely a first for the currency, as it is elevated by a government losing favour.