Brexit dents UK car sales, retail volume

London: Post-Brexit tremors are impacting the consumer confidence in the UK and more particularly automobile and retail sales. According to latest data, new car registrations fell for only the second time in more than four years in June following the shock vote to leave the European Union (Brexit). Adding further to the woes, the number of shoppers on the country’s high streets dropped 3.4 percent.

The UK automobile industry was one of the most vocal supporters of the campaign to stay in the bloc because of its export links to the continent. The UK car industry witnessed record sales level in 2015. Investors may not be aware of the impact of the June 23 ‘Brexit’ vote on Britain’s economy until official data becomes available by August.

The UK car industry body Society of Motor Manufacturers and Traders said it was too early to link June’s 0.8 percent year-on-year fall in sales to the referendum result. Car sales in June fell to 255,766 units.

However, early signs suggest it has hit consumer confidence.
British Sterling is trading at 31-year low and the Bank of England (BoE) has warned that the financial risks it highlighted ahead of the vote are starting to crystallize.
The UK car industry body Society of Motor Manufacturers and Traders said it was too early to link June’s 0.8 percent year-on-year fall in sales to the referendum result.

The car industry body has requested the British government to take measures to boost economic confidence.
Reuters reports that sales in June fell to 255,766 units. The fall is for the second time only since February 2012. Registrations fell in October last year, blamed partly on a drop in sales of Volkswagen models in the wake of the diesel emissions scandal.

Retail data company Springboard

The foot falls at British shops fell 3.4 percent in the 10 days following the referendum compared with last year.

Bank of England Governor Mark Carney has said he expects the BoE to pump more stimulus into the economy over the summer and finance minister George Osborne has tried to reassure investors by holding out the prospect of further cuts to corporation tax.

Bank of England Governor Mark Carney has said he expects the BoE to pump more stimulus into the economy over the summer and finance minister George Osborne has tried to reassure investors by holding out the prospect of further cuts to corporation tax.

On the high street, the foot falls at British shops fell 3.4 percent in the 10 days following the referendum compared with last year, according to retail data company Springboard. It said the initial shock of the Brexit vote had put people off shopping.
That tallied with British retailer John Lewis which said on Tuesday that sales growth at its department store chain slowed in the week to July 2.
Online job site CV-Library said average salaries fell by 1.9 percent in June from the same month a year ago.

However, it said advertised jobs jumped by 14.1 percent.
Britons had been warned by the government, the central bank and a wide range of economists that a vote to leave the world’s largest trading bloc would damage the economy.