UK hit by ‘triple whammy’ as Brexit looms over the economy –

8 months ago Comments Off on UK hit by ‘triple whammy’ as Brexit looms over the economy –

Job creation in the sector fell to its lowest level since 2013, while businesses also reported a decline in new contracts as a result of concerns about the health of the global economy. 

With Britain facing the prospect of a looming summer referendum on EU membership and financial markets gripped by volatility, less than half of the companies surveyed said they expected their business to grow over the next 12 months. 

Confidence is now falling to levels that have “historically presaged an imminent slowing in the economy to near stagnation or worse in coming months”, said Mr Williamson.

Samuel Tombs, at Pantheon Macroeconomics, said the wave of weak data was “the clearest indication yet that uncertainty created by the EU referendum is hurting the economy”. The ‘Brexit’ debate is now in full swing, with the vote set for June 23.

James Knightley at ING said a ‘remain’ vote would see a “bounceback” in positive economic sentiment among domestic firms. 

“However, should [the UK] vote to leave, then the near-term growth backdrop will deteriorate even further, which will likely result in renewed Bank of England policy stimulus and add to the downside risks for sterling.”

One measure for market expectations for a UK rate hike has been pushed back to beyond 2017, suggesting that even the European Central Bank will move earlier than the Bank of England.

The pound remained broadly unchanged against the dollar after the release. 

UK hit by ‘triple whammy’ as Brexit looms over the economy –