Brexit Seen Delivering Brutal but Brief Blow to UK Economy The UK economy is on “a very different path” from that of a few months ago, with business investment and consumer spending due for a short, sharp post-Brexit shock, according to a forecast by the EY Item Club. The organization has slashed its UK growth forecast for 2016 to 0.4% from 2.6% and predicts the pound will be down 15% by year’s end. Gwyn Topham discusses the issue. To read the full article in The Guardian, click: UK Economy Must Endure ‘Short, Sharp Shock’ After Brexit Vote.
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Economic growth in the U.S. registered a frail 0.5% in the first quarter; the worst showing since Q1 of 2014. A strong dollar and a drive by businesses to draw down inventories contributed, as did slow investment due to low oil prices. However, Lucia Mutikani discusses that analysts are optimistic the pace will pick up as some stifling factors fade in coming quarters. To read the full article in Reuters, click: U.S. Economy Stalls in First Quarter as Activity Weakens Broadly.