Triple helping of good news for Britain PLC

A TRIPLE serving of upbeat economic data yesterday once again confounded warnings of a post-Brexit shock.

Consumer confidence is rising at the fastest pace for almost three and a half years, retailers are reporting much stronger than expected sales on the high street and mortgage lending held steady in July.

One expert said the good news undermined warnings from Remain campaigners that uncertainty created by the Brexit vote could bring ‘immediate economic Armageddon’.

Scott Corfe, director of the Centre for Economics and Business Research (CEBR), added: ‘It is evident that the public have yet to feel many, if any, of the effects from the vote to leave the EU.’

On confidence, a poll of 6,000 people by YouGov and the CEBR found the grim warnings from the architects of Project Fear appear to be wearing off.

It said consumer confidence had jumped to 109.8 points in August, up by 3.2 points from 106.6 in July, the highest monthly bounce since February 2013.

Households were more confident about their financial situation, property value and job security. August’s rise in consumer confidence follows a sharp fall in the month follow- ing the EU vote and was driven by low inflation and record high employment. The pollsters warned this could change in the year ahead as the weak pound pushes up the cost of imports. But Stephen Harmston, head of YouGov, said: ‘For all the talk of doom and gloom most consumers have yet to feel the tangible impact of the vote to leave the EU.’

The optimistic poll was backed up by buoyant retail sales figures from business group the CBI which surveyed 131 firms, including shopkeepers, motor traders and wholesalers.

Retail sales smashed expectations in August. The number of retailers saying volumes were better this month than they were last year stood at 35 per cent compared to 26 per cent who said sales were down. The balance of nine was a sharp improvement on July’s minus 14.

Completing the good news, the Council of Mortgage Lenders said mortgage lending held steady in the aftermath of the June referendum. Households borrowed an estimated £21.4billion in July, down just £ 100million from June and £200million from July 2015.