Cahn – New figures show Brexit uncertainty is hitting business investment

Business investment in the UK has flatlined, revised GDP figures from the Office for National Statistics show today.

The revised figures, covering the 2nd quarter of 2017, show business investment did not grow at all during that period. Household spending growth fell to 0.1%, while overall GDP growth was unchanged at 0.3%, driven largely by Government spending. 

Commenting, Sir Andrew Cahn, former head of UK Trade & Investment and leading supporter of Open Britain, said:

“The news that business investment has not grown at all in the second quarter of 2017 is genuinely concerning. Investment is the true driver of economic growth, and for it to stall in this way suggests all is not well in the British economy.

“It is hard to escape the conclusion that Brexit is playing a significant role in this slowdown. When businesses are so uncertain about our future trading relationship with the European Union, it is hardly surprising that they will be reluctant to commit investment.

“The Government’s decision to leave the Single Market and the Customs Union will have a further impact on investment. Any new barriers to trade between the UK and our largest trading partner will inevitably have an impact on business. No amount of talk about future trade agreements with global economies can change that.

“To support growth and jobs, we need the Government to prioritise trade in the Brexit negotiations, and give British businesses the certainty and confidence they need.”

/ends