Confidence in UK among European business leaders has collapsed due to Brexit, says survey
The confidence of European business chiefs in the UK economy has evaporated due to Brexit, causing them to slash their investment intentions, a new report by investment bank Credit Suisse has revealed.
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Over 65 per cent of European business leaders said the political wrangling had made them less likely to invest in Britain, according to a survey of 90 bosses by Credit Suisse which was released today.
The gloomy news comes as Westminster gears up for European Parliament elections at the end of May and after Britain’s membership of the European Union was extended until 31 October unless a deal is reached.
Over fifty per cent of the business leaders polled said Brexit was their main concern, ahead of the outlook for the Chinese economy and rising protectionism under Trump.
Credit Suisse found that the UK was seen as the centre of a slowing trading environment. Of those who said they had seen a slowdown in the last six months, nearly 70 per cent said Britain was the most impacted region.
Richard Kersley, head of global thematic research at Credit Suisse, said: “The uncertainty surrounding the UK’s position in the EU is the biggest concern for European executives.”
He said: “This has had both a short and a long term investing impact as companies await greater clarity to see how Brexit plays out.”
Amid a struggling European economy, the survey found that corporate spending plans had weakened for most sectors. The number of managers saying they would increase spending fell for the second successive survey.
Read more: UK economy's strong start to year likely a 'false dawn', forecaster says
Fewer corporate leaders thought that labour costs would be higher over the next six months in a sign that Europe’s tight jobs market could be reaching its peak.