As reported by Reuters, early-Monday data on UK housing prices shows that the housing market continues to struggle, falling -1.5% against the previous year's -1.7% slide, adding onto other key economic data for Britain that suggests Brexit may be a much bigger rock around the neck of the UK than many expected, hampering consumer spending alongside housing prices.
Key quotes
Consumer spending dropped 0.7 percent year-on-year in November, a sharper decline than October’s 0.2 percent drop, Visa said, based on inflation-adjusted usage data from its debit, credit and prepaid cards.
“The disappointing trend reflects relatively subdued consumer confidence as uncertainty lingers over the outcome of ongoing Brexit negotiations,” IHS Markit economist Annabel Fiddes said.
More than 1,000 restaurants went bust in Britain in the year through September, a 24 percent rise on the previous 12 months as the industry grapples with overcapacity as consumer spending slows, accountants Moore Stephens said on Monday.
“Closures in the restaurant sector are at epidemic levels now,” Jeremy Willmont, head of restructuring and insolvency at Moore Stephens, said in a statement.
“In the wake of Brexit uncertainty and interest rate rises, it seems consumers are tightening their belts and discretionary spending is the first thing to go,” Willmont said.
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