FTSE gloomy about economy but fears lessen over Brexit – comment

“The latest study about business confidence towards the UK economy is yet another signal that there is still a high level of uncertainty amongst businesses about their future in a post-Brexit era. We found last year that businesses were unclear about what impact Brexit will have on their finances, something that has not changed, despite the extension of the exit date.

“Uncertainty around Brexit has begun to take its toll; the most recent CBI service sector study shows just how uncertainty in the run-up to Brexit has begun to impact the services industry. Businesses need to protect themselves as best they can by assessing potential risks and identifying opportunities such as new markets, customers and suppliers. The continued lack of clarity over how the UK leaves the EU at the end of October shows that the way in which businesses plan ahead for Brexit remains critical to their future success.”

“The latest figures on business confidence mirror Dun & Bradstreet’s recent UK Quarterly Industry report. In its report for Q2, Dun & Bradstreet downgraded the political environment outlook from ‘stable’ to ‘deteriorating’ due in part to the increasing risk of a ‘no-deal’ Brexit.”

Markus Kuger, Chief Economist, Dun & Bradstreet