Limited Brexit impact, but growth slowing nonetheless

The UK’s Brexit vote does not appear to have had a marked adverse impact on the euro-zone economy so far as the main survey indicators rose slightly in July. But Q2 GDP data confirmed that economic activity was already slowing before the referendum: GDP rose by just 0.3% after a 0.6% increase in Q1. And the surveys are consistent with continued gains at a similarly slow pace, suggesting that the fading boosts from lower energy prices and a weaker euro are dampening growth in the region compared to last year.