These economic experts are getting seriously worried about Brexit
REUTERS/Eddie Keogh
"The upcoming Brexit referendum appears to be generating an extraordinary level of economic policy uncertainty," Professor Nicholas Bloom of Stanford University said, speaking to the Financial Times.
"We think Brexit-related uncertainty is having a material negative effect on UK economic performance," he added.
"This Brexit-induced slowdown is partly driven by firms pausing new investment and hiring projects until the future status of the UK is clear."
March figures in the Uncertainty Index are the highest since it began, and only the eurozone crisis of 2011-13 beats April's figures.
For March the index reached 475.56, while in April it was 339. To put those numbers in context, the index usually hovers around 180-220.
According to its website, the index looks at newspaper coverage of policy-related economic uncertainty, tax code provisions set to expire in future years and general disagreement among economic forecasters to come up with the figures.
These findings come as UK manufacturing contracted for the first time in three years. On Tuesday, Markit's Purchasing Managers Index level was at 49.2 in April, compared to 50.7 in March - anything below 50 signals a reduction in activity. A release alongside that data suggested that "the upcoming EU referendum had led some clients to delay spending," hurting the sector.
Increasing numbers of major organisations - including the Bank of England - have warned about the dangers of Brexit, and last week BoE Governor Mark Carney said that the fears around the referendum "are the biggest risks facing the UK economy."
Polling suggests that remain voters have the edge over the leave campaign in the Brexit referendum - taking place on June 23 - but it's still very close, with only a percentage point between both camps.
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market