The title of the article gets to the core of an important issue — how does confidence affect the macroeconomic environment? Is confidence an important influence on our spending and the output of the economy? Or does confidence merely mirror the happiness we get from consumption and being economically active?
The relationship between confidence and the economy has taken on greater significance in recent times because the Brexit process is generally seen as having fuelled uncertainty and weakened business and consumer confidence. Some argue that the effect is to make consumers and producers more cautious, so weakening the growth in spending and production.
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