Two trends propping up economic growth in Britain have suddenly reversed as more consumers realise the damage from Brexit is permanent, not transient

Reuters / Arnd Wiegmann

• The UK savings rate suddenly looks like it is going to go up.
• That's because Brits are not taking on new debts.
• Credit Suisse argues that consumers were willing to tolerate the short-term negatives of Brexit, but they are not going to finance the long-term.
• People are "realizing that the damage to their real incomes from the Brexit vote is permanent, not transient," CS says.
• None of this looks good for economic growth.

British consumers have stopped taking on more debt and started saving their money again, in a sudden reversal of two trends that propped up economic growth in Britain over the last year. If the trend continues — and Credit Suisse analysts Neville Hill and Sonali Punhani told clients recently they believe it will — it will hurt one of the main drivers of GDP growth in the UK: consumer spending.

Since the EU Referendum of 2016, Brits have done two things with their money:See the rest of the story at Business Insider

NOW WATCH: How socially responsible investing can help you avoid catastrophic drops within your portfolio

See Also:

• The CBI just made a major intervention to keep Britain in a customs union after Brexit
• Sears is closing 40 stores in 24 states — here's the list
• Here's what time Prince Harry and Meghan Markle's royal wedding will start where you live — and how to watch it

SEE ALSO: The UK's 'credit impulse' just went sharply negative, and that explains why the Bank of England did not raise interest rates today