Rise in businesses pessimism

Confidence among British businesses fell sharply following the vote to leave the European Union, a survey showed on Tuesday, reinforcing the view that the economy could be in for hard times after the historic decision.

The number of businesses pessimistic about the economy over the next twelve months jumped to 49 percent in the week following the referendum from 25 percent before the vote outcome, according to a survey conducted by YouGov and the Centre for Economics and Business Research (Cebr).

Britain’s vote to withdraw from the 28-nation club has prompted political chaos, a sharp drop in the pound and clouded the economic outlook.

Against this backdrop, Bank of England Gov. Mark Carney has said it would likely need to provide more stimulus to the economy over the summer.

“These figures .... suggest a significant shock reaction [to Brexit],” Scott Corfe, director at Cebr said.

“Not only are businesses feeling much more pessimistic in general about the state of the economy, but their own expectations for domestic sales, exports and investments over the next 12 months have gone off a cliff.”

(REUTERS)