Brexit’s damages on UK economy are materializing, reports say
Foreign investment flows reported that Brexit’s damages to the UK economy are already surfacing.
Tracking investment flows around Europe, EY Attractiveness Report shows a 6 % increase on UK’s total inbound investment project. Also this, in effect, helped a 22 % rise in digital investments.
In 2017, the UK outbound investment noted a “marked increase” evidently in business and financial services.
Financial services outbound investment projects went to a 93% increase, as per the accountancy firm’s analysis of announcement.
From 117 to 125, business services outbound rose up to 7 %.
EY Chief Economist Mark Gregory said, “It’s quite a pick,” referring to the figures of the outbound investment projects.
“If it hadn’t been for the surge of digital, then the overall numbers would look pretty ugly. Lots of these digital projects are quite small. Our core is flat or shrinking,” he said.
Foreign investors named Paris as the most attractive city to invest to in, according to EY survey. For the first time, Paris surpassed London.
Further, the EY report showed that financial services investment projects decreased to 26%.
However, the total number across Europe went to a 13% increase.
President Paul Dreschler of the Confederation of British Industry advised that Brexit meant “companies are having to plan for the worst while hoping for the best.”
“They are making choices that will determine new jobs, new plants and new investments in the years ahead,” he said.
UK economy performs with greatest signs of stress
With the rising crisis in Eurozone and double-dip recession fears, the UK economy is performing at greatest signs of stress.
Since 2012, the economy manifested the sharpest decline in manufacturing output and greatest degrees in employee pessimism.
ManpowerGroup recruitment firm surveyed that Brexit and decline in high street spending are contributing factors to 2018. This year was regarded as the worst time for British firm’s plans on staffing.
UK’s quarterly poll of 2000 major employers from nine various industry sectors revealed a 4% net balance on hiring staff.
The banking and finance industry was the weakest stances in the survey.
The hiring sentiment arises as the sharpest decline in the output of Britain’s factories was recorded.
The Office for National Statistics reported a 1.4 % decrease in the manufacturing output in April. Economists had forecast a 0.3% growth modest.
Concerns on UK economy’s standing in reaching its lowest ebb since the Greek debt crisis of 2012 are likely coming.
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