Post referendum developments in uncertainty measures: an update

Publication date: 26 Oct 2016 | Publication type: Economic Review Preview | Theme: Macroeconomics, Exiting the EU & Britain after Brexit | NIESR Author(s): Piggott, R


This is a preview from the National Institute Economic Review, November 2016, no 238

Ahead of the forthcoming issue of the National Institute Economic Review (NIER no. 238) that will be published on Wednesday 2nd November, we release a series of boxes, each of them looking at specific aspects of economic policy in the post Referendum period.

This box, prepared by Rebecca Piggott, is an update to ‘Recent developments in uncertainty measures’, Box F in our August Review (NIESR, 2016).

Rebecca Piggott said: 'The run-up to the referendum on the UK’s membership of the EU and the period immediately following saw a surge in various measures of uncertainty in the UK economy. This is important in shaping the UK’s economic prospects since the consensus among economists is that firms tend to delay investment plans in response to elevated uncertainty. Our composite index indicates that uncertainty has since fallen, but remains above its long run average level.'