“Although most of Western Europe is showing increasing level of stress against the backdrop of slowing global growth and an escalating trade war, the additional risk of an un-managed Brexit is impacting business optimism in the UK.
“Across Europe, the latest PMI figures for the construction and manufacturing sectors stand well below the neutral 50-points line that delineates expansion from contraction. Order books are depleting and employment levels are falling, although the manufacturing PMI in the UK was buoyed somewhat by increased stockpiling ahead of a potential no-deal scenario.
“With political tensions high ahead of the 31 October Brexit deadline, it is highly likely that business confidence will continue to waver and lead to further adverse impacts on the economy. In line with the continued uncertainty, Dun & Bradstreet is maintaining its ‘deteriorating’ risk outlook and ‘medium risk’ rating for the UK economy.”
Markus Kuger, Chief Economist at Dun & Bradstreet