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Brexit drags UK business output to three year low, finds BDO report

UK business output and optimism has been dragged to three-year lows, according to a new report by accountancy and services group BDO.

The report, which said the UK economy was already showing signs of slowing ahead of the EU vote, found that manufacturing had the gloomiest outlook, whilst job creation in the economy slowed to a two-year low.

BDO’s Peter Hemington also indicated that Brexit, and the economic uncertainty attached to it, had also disrupted investment in the UK economy.

The report shows business output, which reflects 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.

Mr Hemington commented: “In all likelihood, whatever arrangements the UK eventually arrives at with the EU won’t look very different from what we have at the moment.

“So businesses cannot afford to get caught up in the hysteria. They need to hold their nerve and continue to invest in the UK.

“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.”