Brexit spurs biggest cut in UK business investment in 10 years, says BCC
Updated : March 18, 2019 06:52 AM IST
Business investment was forecast to fall by an annual 1.0 percent in 2019, the British Chambers of Commerce (BCC) said. Weak investment by companies drags on productivity which puts a brake on wage rises and weighs on the overall economy.
Many financial firms have set up operations in other EU countries and carmakers have reduced their expansion plans in Britain. BMW said this month it could move some output in the event of a no-deal Brexit.
The BCC said that the diversion of resources to prepare for the risk of a no-deal Brexit and the high up-front costs of doing business in Britain, as well as questions over Britain’s future ties to the EU, would limit any quick investment rebound.