No-deal gloom hits a new low FTSE bosses fear for post-Brexit economy

THE bosses of Britain’s biggest businesses fear the economy will decline further in 2019 as they give up hope of Government sealing a good Brexit deal.

A new Ipsos MORI poll revealed three-quarters of FTSE 500 leaders expect the general economic condition of the country to get worse over the next 12 months, up from 66% this time last year.

Nearly all the leaders said the resolution of Brexit uncertainty was the most important issue facing the UK today, but 68% said they were not confident in the ability of the Government to negotiate a good deal. Only one-fifth said they were confident, down from 28% this time last year. Most believe Brexit has been worse than they predicted 12 months ago with more than half stating it was a “significant risk” to their company.

Ben Page, CEO of Ipsos MORI, said: “As with the public, business is losing confidence in Government’s ability to manage Brexit.”

UK manufacturers are proving particularly nervous according to a separate survey. They spent Christmas ramping up their stock levels of raw materials as fears over a no-deal Brexit intensified.

IHS Markit/CIPS Manufacturing Purchasing Managers’ Index revealed new orders of materials and finished goods by both manufacturers and their customers reached record highs in December.

It said companies were implementing plans to reduce potential supply chain disruption such as border customs delays.

“Stocks of purchases and finished goods both rose at near surveyrecord rates, while stockpiling by customers at home and abroad took new orders’ growth to a 10-month high,” said Rob Dobson, director at IHS Markit.

“Any positive impact for the sector is likely to be shortlived, however, as any gains in the near-term are reversed later in 2019 when safety stocks are eroded or become obsolete.

“Manufacturing will be entering 2019 with Brexit uncertainty having intensified considerably.”