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UK Economy Could Start to Pick-Up as Brexit Fearmongers Change Tune


Well, some economic indicators – notably the parity of the pound sterling against the U.S. dollar – have tanked since the British public voted to withdraw from the European Union. Conversely the FTSE 100 larger companies stock market Index has risen quite sharply, as has the FTSE All-Share Index. The FTSE 250 index, though, which includes the better mid-cap companies, and is perhaps seen as more representative of UK industry as a whole, did fall sharply, is now beginning to recover, but is still around 8% down on the immediate pre-Brexit vote peak when it was widely believed, at least among financial circles, that the Remain vote would win the day.

But just as there are signs that even the FTSE 250 Index may be beginning to pick up there are also signs that the pound sterling may have bottomed. These movements one way or the other are usually overdone on the immediate aftermath of a momentous decision like that to Brexit. And, as we pointed out here beforehand in our article:Britain reaping the whirlwind of Remain campaign ‘project fear’ rhetoric sentiment is still suffering from the almost certainly strongly exaggerated statements from much of the political and financial establishment (who were mostly campaigning to remain in the EU) of how much the UK economy was likely to suffer from an exit vote. Many of these same figures are now needing to attempt to begin talk the economy up again. While their reversals of stated opinions may somewhat dent their credibility, some of this new found optimism among pre-vote naysayers may well strike home and at least prompt...