UK PLC feels negative on the Economic Outlook…

The Chartered Governance Institute (ICSA) and the Financial Times surveyed board members of FTSE 350 companies. The results of that survey suggest that many UK board members feel the UK’s economy will deteriorate in the next 12 months.

The headline statistics were as follows:

• 69% think Brexit, consumer slowdown and ‘trade wars’ will have a negative impact
• 3% think leaving the EU is positive
• 49% see Brexit as a ‘principal risk’ to businesses in the UK, compared to 39% in Summer 2018
• Just 7% expect an improvement in the UK economy, and 10% expect an improvement in the global economy
• 12% of businesses are considering moving or have already moved a significant part of the business out of the UK, which had been just 3% a year before

Looking at their own businesses though, the statistics looked brighter, particularly in comparison with results from the same survey completed six months before.

• 43% predict a decline in performance, which had been 50% in Winter 2018
• 35% predict ‘no change’, which had been 26% six months before

Brexit specific statistics:

• 59% see leaving the EU as damaging, which had been 73% in Winter 2018
• 29% are increasing inventory to prepare for a no-deal Brexit
• 40% think a no-deal Brexit will be damaging, while 40% didn’t. The remaining 20% were unsure.

Further information can be found here: https://www.icsa.org.uk/about-us/press-office/news-releases/ftse-gloomy-about-economy-but-fears-lessen-over-brexit-boardroom-bellwether-survey-finds

If you’d like to discuss your concerns or worries about Brexit, or any other matters, please do get in touch. We sadly have no ‘inside line’ to Europe, but can offer support and suggestions.