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Indicators of disappointing British economic performance

Indicators of disappointing British economic performance

Britain's economy was the worst in November since July 2016 on the back of uncertainty surrounding the Brexit process and early elections in the country next month, a report showed on Saturday.

According to Bloomberg, the figures give a quick prediction and come a week before the full results are due. They are based on 85 percent of participants. Following the report, the pound fell 0.3 percent to $ 1.7782 by 09:32 am London time.

Britain narrowly escaped a recession in the third quarter as factories stockpiled large quantities of inputs in anticipation of the country's exit date from the European Union, which was slated for October 31, before it was extended for three months. However, these were less than the stock before the original date of exit, March 31 this year.

Following the new extension of Brexit, companies are reluctant to make new investments and look for a clearer picture of the future relationship between the UK and the EU. The picture will only become clear after early general elections in Britain on 12 June.

Chris Williamson, chief economist at i. H.S Market, revealed that the weak data revealed by the index puts the British economy on track to record a 0.2 percent drop in GDP in the fourth quarter.

"A decision has to be made," Zdenek Turek, chief executive of Citibank Europe, said in an interview in Dublin, the capital of the Republic of Ireland. "The exit from the EU has not yet taken place."

Turek said that the group, based in New York City, may move more staff from London to face the repercussions of Brexit depending on whether customers will increasingly move outside Britain.

Citibank has already canceled 200 jobs at its current EU headquarters because of Brexit and has moved 60 jobs from London. Turek pointed out that the transfer of staff will be mainly to Dublin; where there are already 2500 employees, as well as to the city of Frankfurt, Germany
Indicators of disappointing British economic performance
Mohamed Hamed


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