Business confidence falls to nine-year low amid political uncertainty over Brexit
Morale among businesses is at its lowest since the aftermath of the financial crisis, according to a new survey out today.
Political uncertainty surrounding Brexit weighed down on hiring and investment plans in the manufacturing and services sectors, data firm IHS Markit’s latest quarterly report found, pushing business confidence down to its lowest level since 2009.
Prime Minister Theresa May last week reached a draft withdrawal agreement with the EU that triggered cabinet resignations based on the deal’s stipulation that the UK cannot quit a customs union arrangement with the bloc of its own accord.
"Reports from survey respondents widely indicate that Brexit-related concerns have weighed heavily on business investment and staff hiring plans," IHS Markit economist Tim Moore said.
"Some of the slowdown in capex plans can be attributed to softer global demand patterns, but the latest UK figure is notably weaker than seen elsewhere across Europe and in other developed economies."