Brexit uncertainty has hit UK business: Report

By: | Published: July 11, 2016 12:20 PM

"We are at a crucial moment where we must be sensible in protecting the UK economy. We need a plan of action now that gives businesses the added confidence to progress with investment plans," Hemington said.

A Union Jack flag flutters next to European Union flags ahead of a visit from Britain's Prime Minister David Cameron at the EU Commission headquarters in Brussels, Belgium February 16, 2016.  REUTERS/Yves HermanA Union Jack flag flutters next to European Union flags ahead of a visit from Britain’s Prime Minister David Cameron at the EU Commission headquarters in Brussels, Belgium February 16, 2016. REUTERS/Yves Herman

Uncertainty around Britain’s exit from the European Union (EU) has dragged UK business output and optimism to three-year lows, a new report suggested.

The report on business trends from the accountancy and services group BDO said the British economy was already showing signs of slowing ahead of the EU vote on June 24, BBC reported on Monday.

According to the report, manufacturing had the gloomiest outlook, and job creation in the economy slowed to a two-year low.

BDO head Peter Hemington said uncertainty prompted by the Brexit had also disrupted investment in the UK economy, BBC said citing the report.

“We are at a crucial moment where we must be sensible in protecting the UK economy. We need a plan of action now that gives businesses the added confidence to progress with investment plans,” Hemington said.

The report showed business output, which reflected company orders for the next quarter, slipped to 99 last month, compared with 99.7 in May and 100.6 in April.

Meanwhile, business optimism also slid, falling to 98.9 in June from 99.4 in May.

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