The UK shook off the wintry thrall this month, rebounding from the snow and ice to leap 15 basis points to 5.32. April was 5.17. The real climate has been dominating the economic climate for the past two months now. Whilst the bounce back in the weather after the snowy period has been muted, it had been accompanied by a recovery of UK markets.
The May score of the Accountagility Index (AAX) is now rising strongly towards the post-Brexit peak of 5.38. The Index records UK political and economic health in a score out of ten, and any score above 5.00 is positive.
May Brexometer Reading
The two drivers of the upward move in May were recovery of UK markets and the improvement in business sentiment.
Looking at the detail, improvements in GDP growth, ongoing reduction in inflation and unemployment were further positive factors. On the other hand, falls in sterling, increase in debt and concerns about the UK’s lack of cohesion on its stance on the customs union, have held the Index back.
The Accountagility Index Rating for May
The Brexit talks will dominate the political agenda over the coming weeks. Can Theresa May keep her troops in a single cohort and lead a clear negotiating position?
Next month, will politics steal the headlines or will the surge continue?
Keep following the Brexometer to find out.
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