The Accountagility Index (AAX) dropped 16 basis points to 5.06 this month, as news of a hung Parliament cast a long shadow over political stability, the pound and inflation.
Interestingly, the progress of Brexit talks did not contribute to this fall, because the timetable is unchanged and the likelihood of a hard Brexit has receded.
June Brexometer Reading
Any score above 5.00 is positive. So at 5.06, and rising above the minute-by-minute political turmoil, it is possible to see that the UK economy is still showing positive signs; the market continues to rise, economic growth is still projected by the IMF at 2%, employment is rising and the UK debt ratio improved slightly too. So it is not all gloom and doom.
Whatever will happen next? Will the Brexit talks start on time on 19th June? Will we see a successful Minority Government being established and will Theresa be leading it?
The Accountagility Index Rating for June
Some things are clear however:
- Business confidence is being affected and this sentiment will be reflected in next month’s Index
- Inflation will continue to remain at current levels, or higher, driven by the weakness of Sterling
Keep following the Brexometer to find out.
We are sorry to have kept you waiting an extra few days for the Brexometer update this month. We felt that a reading conducted before the Election would be misleading. We hope it has been worth the wait.
What makes up the Accountagility Index (AAX)?
The data used to calculate the Accountagility Index are based on eleven key factors, all derived from a diverse range of independent and credible sources
- UK economic growth – A key building block of UK prosperity
- Markets – Reflects the health of larger British companies
- UK inflation – An important measure which needs to be carefully monitored
- Sterling strength – Affects imports, exports and confidence
- UK employment – Impacts so many aspects of UK economic activity
- UK Debt ratio – Tracks the UK’s progress against long term balancing of the books
- FDI (Foreign Direct Investment) – Illustrates the practical confidence levels from outside the UK
- Sentiment – Can be often the most important factor in how the economy is perceived
- Political stability/environment – A must include measure which can have instant impact on the big picture
- Progress on Brexit negotiations – Casts a very long shadow over all things
- Progress of International trade talks – A vital indicator of the UK’s international positioning