Pessimism as bosses fear Brexit economic fallout

BUSINESS leaders’ confidence in the economy has fallen to its lowest point so far this year as fears grow about the impact of a potential chaotic Brexit, according to a new survey published today.

The monthly Institute of Directors (IOD) tracker found 16pc more bosses on balance had a pessimistic view of the UK’S economic prospects compared to an optimistic outlook – the worst such result in 2018. The poll of 750 bosses was conducted in July. Uncertainty around trading with the EU was the second biggest concern cited by businesses (44pc), after the UK’S general economic conditions (47pc).

Brexit had dropped out of the top three concerns cited by firms earlier in the year.

Tej Parikh, senior economist at the IOD, urged policymakers to “stay wary of the fragility of business confidence”, adding that the poll reinforced its view that the Bank of England had moved too soon in raising the interest rate to 0.75pc this month.