British companies are spending less and scaling back amid uncertainty regarding Brexit. A set of surveys conducted by Deloitte and the Institute of Chartered Accountants in England & Wales revealed that business confidence in the UK is now at its lowest level in a decade.
The details of the report reveal a tense business environment in the world’s fifth largest economy. A survey by Deloitte found that British CFOs are now applying their “most defensive strategy stance in nine years.” They also found that revenue growth projections are now at their lowest since 2016. In a move indicative of the current business environment, Nissan scrapped plans to build the new X-Trail SUV in the country this last Sunday. The fears that are being voiced are overwhelmingly over the UK’s planned exit of the EU, which is due in less than two month’s time. The 110 CFOs surveyed by Deloitte cited Brexit as the top risk to their businesses. The combined market value of these CFO’s companies is over USD $510 billion. 80% of them believe that Brexit will ultimately hurt the business environment in the UK.
Many companies are calling for the decision to leave the EU to be delayed over these fears, while others worry that a delay could cause more uncertainty and thus more harm to the economy.
