It appears the British are feeling uncertain about their nation's economy.
One indication of this slipping confidence can be found in Britain's housing market.The Royal Institute of Chartered Surveyors (RICS) Housing Market Survey across England and Wales fell to about negative 50 last month, down from an all-time high near 100 in 2013.
Another indication is revealed in this chart, which is followed by commentary from Elliott Wave International's Global Market Perspective:
The IHS Markit services purchasing managers' index came in "far below economists' expectations," hitting 52.2 in October, down from 53.9 in September. (FT, 11/6/18) Only one week before, the manufacturing PMI slipped from 53.8 in September to 51.1 in October, creating worries about British industry. Stock prices remain the best gauge of aggregate optimism and pessimism, but because PMI surveys capture sentiment rather than actual output, they can also foreshadow economic weakness relatively early. According to this chart, optimism in the service sector has steadily waned since November 2013, while British manufacturers have sputtered since 2011.
Furthermore, EWI's analysts also anticipate a broad deterioration in the economies of other nations around the globe in the months just ahead.
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