- Theresa May to Officially Trigger Article 50 Today
The U.K Prime Minister Theresa May will officially trigger article 50 of Lisbon treaty today, March 29.
The process that will take at least two years to finalise is expected to impact both the Euro-area and the United Kingdom economies going forward.
However, business sentiment in the U.K has plunged since the announcement of the date, and so is the manufacturing and construction sectors.
Consumer prices in the U.K accelerated more than expected in February to exceed the Bank of England’s target for the first time in almost four years. This persistent rise in the cost of goods, especially imported goods is expected to affect consumer spending and subsequently impact factory production as businesses would be forced to adjust to the loss of economic momentum.
Also, data showed unsecured lending, consumer credit, has climbed by 1.4 billion pounds ($1.7 billion) from December, according to Bank of England. Adding to evidence that consumers are cautious of taking on debt ahead of Brexit.
For many consumers, rising cost of goods and fuel remain the biggest concern, while business organizations are concern about the surge in the cost of input that is eroding profits gained from competitive edge of a lower exchange rate.
The U.K economy which grew by 0.7 percent in the final quarter of 2016 and enjoys the unusual surge in consumer spending during the summer as tourists across the world spend more following June referendum that plunged the pound against most of its counterparts is projected to contract by 1 percent this year from 3 percent recorded last year to 2 percent.