HSBC: The UK's Brexit fallout is yet to come

Brexit Fallout? Exactly three months on from the so-called ‘Brexit’ and you could be forgiven for thinking that the UK’s momentous vote on its membership of the EU had never taken place.

Indeed, at first glance, it would appear that the UK and its trading partners across Europe have suffered no ill economic effects from the vote. Of the hard data we have so far ? industrial production and construction for July, and retail sales for July and August ? the surprises have all been to the upside. Retail sales, in particular, saw year-on-year growth rise to a 12-month high in August. Further, there was no evidence of a ‘Brexit effect’ in the August labor market data and housing market data...