The balance of services businesses reporting an increase in export sales stood at zero in the first quarter, its weakest level since 2009, the BCC said on Tuesday. At the same time, more said that orders had decreased than increased for the first time in eight years. Manufacturers also described a tough start to the year.
The business lobby’s survey of over 7,000 companies, employing around one million people, showed confidence dropped sharply in a period that saw Britain’s politicians mired in bitter dispute over how best to take the U.K. out of the European Union. The balance of firms reporting improved cashflow fell below zero for the first time since 2012.
“U.K. growth nearly ground to a halt in the first quarter of 2019, with increasing anxiety over Brexit and weakening global economic conditions driving a significant deterioration,” said Suren Thiru, head of economics at the BCC. “Forward-looking indicators are disappointingly downbeat with weakening orders, confidence and investment intentions pointing to precious little growth over the coming quarters, unless substantial action is taken.
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