POST Online Media Lite Edition


Pessimism among British businesses doubled after Brexit

Staff Writer |
Pessimism among British businesses nearly doubled after the June 23 referendum, according to a survey by the Centre for Economics and Business Research and YouGov.

Article continues below

The CEBR/YouGov survey showed that 49 percent of businesses who responded to the survey felt pessimistic about the U.K. economy after "Brexit" versus 25 percent in the week before the referendum.

The survey also showed that businesses have reined in capital spending plans and their expectations for exports and domestic sales growth. The results signal a sharp slowdown in the economy in the months ahead.

Both Chancellor George Osborne and Bank of England Governor Mark Carney have also warned of a "large negative shock" to the U.K. economy due to "Brexit".

Osborne has also warned that "Brexit" could lead to a recession in the U.K.

The U.K. gross domestic product is set to lose between 1.5 percent and 4.5 percent by 2019 due to "Brexit", the International Monetary Fund Managing Director Christine Lagarde said this week.

Last week, IMF Chief Economist Maurice Obstfeld said in an interview that the U.K. and global economic projections will be revised and the results will be negative. The latest forecasts from the lender is due on July 19.

What to read next

German firms moving investments away from UK due to Brexit
30% of companies would leave UK after Brexit
UK's biggest business lobbies calling for urgent Brexit deal