It seems that the business community is not feeling to positive about the future of the UK economy post-Brexit.
The first quarterly survey, since the nation decided to leave the EU, indicates that business optimism in the financial services industry sector is very low.
Over half of financial companies, who were part of the well-respected survey, said the impact of Britain’s decision to leave the European project was negative. There are also concerns that Germany’s business hub, Frankfurt, is trying to lure British banks, to relocate there, rather than be based outside of the EU.
The CBI (Confederation of British Industry) in conjunction with PricewaterhouseCoopers discovered that optimism about the UK economy is in a period of decline not seen since the financial crisis back in 2009.
CBI chief economist Rain Newton-Smith said: “The challenges facing the sector have not gone away, they’ve actually grown.
“The Government must allay their unease with clear plans for negotiations to leave the EU”.
“An ambitious Autumn Statement would also set a clear direction for growth and prosperity.”
Interestingly many firms actually saw a robust growth in business volumes in the past three months, however, in the next period growth is expected to be moderate, and ten per cent of companies said they think they will see a decline.
In other recent Brexit news, The OECD (The Organisation for Economic Cooperation and Development) has cut the UK’s growth target in half, by a whole percentage point.
The OECD report states: “While markets have since stabilised, sterling has depreciated by around 10% in trade-weighted terms since the referendum.
For 2016, GDP growth has been supported by a strong performance prior to the referendum, even though business investment contracted.”
