KEY indicators of the UK’s economic health weakened significantly in the first quarter, amid “anxiety” over Brexit, British Chambers of Commerce’s latest survey reveals.
The survey, published today, shows the proportion of services companies reporting a fall in export sales matched that posting a rise, with this stagnant position representing the worst outturn in a decade.
And investment intentions deteriorated to the weakest in eight years in both the services and manufacturing sectors, amid the protracted uncertainty over the UK’s exit from the European Union, the survey from British Chambers shows. In both services and manufacturing, the proportion of companies reporting a deterioration in cash flow was slightly greater than the percentage of firms experiencing an improvement. This is the first time since 2012 that the survey has signalled a net deterioration in cash flow among UK companies.
British Chambers flagged a particular loss of momentum for the key services sector, while noting tough trading conditions at home and abroad for manufacturers.
Suren Thiru, head of economics at British Chambers, said: “Our latest survey suggests that UK growth nearly ground to a halt in the first quarter of 2019, with increasing anxiety over Brexit and weakening global economic conditions driving a significant deterioration in almost all the key indicators in the quarter.”
British Chambers director general Adam Marshall said: “Our findings should serve as a clear warning that the ongoing impasse at Westminster is contributing to a sharp slowdown in the real economy across the UK.
“These are some of the weakest figures we’ve seen in nearly a decade, and that’s no coincidence.”
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