Article 50 proves to be ‘of little significance’ to Yorkshire investors, survey claims

Despite the UK government triggering Article 50 later this month, investors in Yorkshire have not been deterred from investing in the UK by the vote to leave the EU.

A new survey from UBS Wealth Management reveals that almost seven in ten (69%) say the Referendum result has had a negligible or positive impact on their likelihood to invest in the UK.

The survey, taken to support the UBS Forum 2017, also asked investors across the UK about their greatest concerns following the Brexit vote.

Two issues dominated in Yorkshire: almost a third (30%) of local investors are most concerned about the UK economy and currency, with the same percentage most worried about London’s status as a financial centre.

Other concerns in the region include the impact of Brexit on trade (13%), the future of the EU (11%) and the loss of the UK’s access to the single market (7%).

Although the UK economy appears to be a key concern for investors in Yorkshire, they remain positive on the outlook for the local economy.

Eight in ten respondents in Yorkshire feel confident about growth in their region this year, making this the most optimistic region in the UK on the outlook for local economic growth.

This comes as the latest Lloyds’s Regional Purchasing Managers’ Index showed business activity in the county grew at a faster rate than the UK average for the second consecutive month.

Karan Sejpal, regional head, North West and Yorkshire at UBS Wealth Management, said: “The EU Referendum result has not, so far, significantly deterred local businesses’ plans for the year ahead.

“It is encouraging to see confidence in the outlook for Yorkshire’s economy amid Brexit uncertainty. For many, Article 50 is of little significance. Businesses will still be waiting for further clarity on what Brexit looks like beyond this date.

“More clarity about the Northern Powerhouse would be welcomed, though businesses will be encouraged that Brexit has not entirely pushed this off the agenda.”

Caroline Simmons, deputy head of investment Office UK at UBS Wealth Management, added: “Whether it’s Britain’s exit from the EU, elections in Europe, or developments in Washington, political volatility seems to be ubiquitous.

“Yet in spite of these distractions, economic fundamentals remain somewhat more stable. While we hold a neutral position on UK equities, UK assets have proven more robust than many feared. We expect this trend to continue over the coming months.

“Markets have already largely priced in the triggering of Article 50 so we do not expect this to cause significant market movement. Investors should be more concerned about longer term factors, beyond Article 50.

“The main watch-outs for investors across the UK should be currency swings and rising inflation. Overall, investors should stay calm and remain invested in a diversified portfolio.”

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