Two different surveys show that Britain's businesses suffer from Brexit-related uncertainty as exports slow, recruitment difficulties mount, and investment plans are scaled back. The British Chambers of Commerce said its survey of 5,600 companies, the largest of its kind in the country, showed services firms were having the most trouble finding staff since the survey began in 1989. and growth in factory exports was the slowest since late 2016.
BCC Director General Adam Marshall said, “These figures reinforce what we are hearing from businesses up and down the country- the uncertainty over Brexit, and the lack of bold moves to boost business at home, are starting to bite.” Just last week, Prime Minister Theresa May told her Conservative Party to back her plan to leave the European Union, as Britain enters “the toughest part of the negotiations”. Sources said the EU's Brexit negotiators see a divorce deal as “very close”. The BCC's quarterly survey showed the percentage of services businesses looking to recruit more staff over the next three months fell to 47 per cent from 60 per cent, the lowest since the first quarter of 1993. Seventy two per cent of firms reported recruitment difficulties, the highest on record.
Growth in both export sales and new export orders was the slowest since the end of 2016, for manufacturers. Marshall said, “Weaker sterling is no longer providing a boon to many of our exporters, while consumer spending is failing to boost the domestic market.” The British economy has lagged behind the growth rate of many other rich countries for quite some time since the 2016 Brexit vote. Meanwhile, accountancy firm Deloitte separately said its survey of chief financial officers pointed to slower business spending and hiring after Brexit. Only 13 per cent CFOs were more optimistic about the prospects for their company than they were three months ago, down from 24 per cent in July. Seventy nine per cent said they expected the long-term business environment to be worse as a result of leaving the EU- the highest share since the 2016 Brexit vote.
Chief executive of Deloitte North West Europe, David Sproul said confidence could recover if Britain secured a Brexit deal. He said, “A deal with a sensible transition period would remove the uncertainty and should deliver a real boost to business spirits.”
