Prepping for Brexit

It's now clear that both govt and households are busy prepping for Brexit.

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Here are some of the signs:

The govt has been trying hard to bear down on the deficit and is having success at last. The UK deficit for April was the lowest for a decade. Despite calls to loosen the purse strings the govt appears to be trying frantically to get it's finances in order, so that if there is a Hard Brexit, it has room to ease the situation with fiscal policy.

Households too are preparing. New car sales have been dropping steadily this year. Why buy a new car and saddle yourself with debt when you can drive your existing car for a bit longer and wait and see how Brexit goes?

Mortgage lending is also dropping as people sit tight and wait to see what happens. Credit card debt is also dropping.

So what is keeping the economy going? In part so many people are now employed that the day to day of just a lot of people spending on essentials is enough. Exporters are also filling the gap.

And Britain is experiencing a lot of tourism, especially from the USA. For example lots of Americans made the trip to Windsor to participate in the excitement of a Royal Wedding involving an American bride. They weren't disappointed either, as the happy couple spent 25 minutes driving up and down streets lined with well-wishers in an open carriage so that everyone got a good view.

The great miracle of Brexit might be that the UK economy finally balances itself and moves away from too much debt.