This update covers views gathered from business contacts by our agents across the UK between late June 2016 and late July 2016. It generally compares activity and prices over the past three months with a year earlier.
A survey of companies indicated the result of the EU referendum would have a negative effect, overall, on capital spending, hiring and turnover over the coming year. Consistent with those results, agents’ scores for employment and investment intentions had weakened in absolute terms, pointing to expectations of little change in staff numbers and capital spending over the coming six to 12 months.
Business services growth had softened further, partly reflecting weakness in commercial property investment and corporate transactions. Consumer spending growth had also slowed, although that appeared to have partly reflected the effects of unusually wet weather. A decline in manufacturing export volumes had been arrested, aided by the depreciation of sterling.
For the full summary of business conditions, click here