UK businesses still ‘reluctant to invest’ over Brexit and interest rates
UK businesses still ‘reluctant to invest’ over Brexit and interest rates
www.theguardian.com
UK businesses still ‘reluctant to invest’ over Brexit and interest rates
41 comments
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This is the best summary I could come up with:
UK businesses are reluctant to make large investments in machinery and new technology while barriers to trade with the EU remain in place and interest rates are high, according to a survey by the British Chambers of Commerce.
The business lobby group said the vast majority of respondents to its quarterly economic survey had frozen or cut investment plans while only 23% said they were considering fresh injections of cash to improve the way they operated.
In a signal that pause in business investment dating back to the Brexit vote in 2016 was still in place, 59% of the 5,000 respondents reported no change and 18% saw a decrease.
He said uncertainty about the government’s plans for infrastructure developments and the threat of further customs checks at the EU border were also holding back investment.
This is in part a reflection of broader uncertainty, with little clarity on major long-term projects and yet more trade barriers to come with the EU,” he said.
The expectation among businesses that inflation will be lower than forecast earlier in the year is likely to further ease pressure on the central bank to raise rates at its next meeting in November.
The original article contains 421 words, the summary contains 197 words. Saved 53%. I'm a bot and I'm open source!
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Lol, the guardian have to crowbar brexit into everything, even making the image brexit related
They never make any comparison, as if the UK is the only country with any issues
If you look at PMI manufacturing survey data, the UK is doing better than the EU, France and Germany, and they also don't mention the good news on services...
But that probably doesn't get any clicks
https://tradingeconomics.com/country-list/manufacturing-pmi?continent=europe
Funny how the report they are reporting on doesn't mention brexit once... inflation being the number one concern, closely followed by interest rates, which affect investment obviously, but the guardian doesn't mention that
Inflationary pressures continue to ease but remain the top concern.
The percentage of firms expecting their prices to rise fell for the fifth consecutive quarter. Two-fifths of firms (41%) now expect to put up prices in the next three months. This is down from an historic high of 65% in Q2 of 2022, indicating inflationary pressures are continuing to ease.
While inflation remains firms’ biggest concern, the level has dropped for the third quarter running, with 65% of firms now worried compared to 69% in Q2. However there has been a corresponding 4 percentage point rise in businesses worried about interest rates, increasing from 41% in Q2 to 45% in Q3.
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You cannot use PMI to make comparisons between countries. PMI is a comparison to yourself and how your economy is doing. Anything below 50 on PMI shows that there is a contraction in the economy. The UK's PMI is 44, so it proves the point that the economy is shrinking.
As for using Germany and France for comparisons that is just bloody stupid. Brexit did not just affect the UK, it was damaging to countries in the EU also.
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41 comments
Follow the money. WHO made massive profits shorting the pound?!?!
Please leave WHO out of this
Heh heh. Not the band, or the World Health Organisation.
He's being done for multiple sexual assaults now, his hedge fund is toast
https://en.m.wikipedia.org/wiki/Crispin_Odey