S&P says UK economy's rebound in August may be a mirage

Published : September 12, 2016

LONDON (Reuters) - Ratings agency Standard & Poor's said on Monday that signs of a post-Brexit vote recovery in Britain's economy may prove to be a "mirage" as uncertainty about the country's relationship with the European Union weighs on business investment.


"While the news is encouraging, we believe it has no bearing on the cloudy longer-term outlook for the UK economy," Sophie Tahiri, an economist at S&P Global Ratings, said in a report.


British consumers have shown little sign of being hurt immediately by the June 23 referendum decision to leave the EU. Companies reported a slump in business in July before a bounceback in August.


(Reporting by William Schomberg, editing by David Milliken)


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