France, Spain, Sweden and US all beat UK with growth in Q2
Commentary from Markus Kuger, senior economist at Dun & Bradstreet, said:
“The latest growth figures suggest that the UK is lagging behind a number of other leading economies – a reminder of the challenges that the UK economy is facing, particularly in the wake of the vote to leave the EU. While growth in Q2 has recovered somewhat from its anaemic performance in the first three months of the year, there is still a high level of political and economic uncertainty. Based on our data and analysis, we are maintaining our ‘deteriorating’ risk outlook for the UK until there is more clarity on how Brexit and the fallout from the general election will impact businesses operating in the UK market.
“Our advice to businesses is to continue to monitor economic indicators and how Brexit negotiations develop over the coming months. Furthermore, we are maintaining our baseline scenario of a gradually slowing economy over the next two years. Leaving the EU will undoubtedly pose challenges, especially for companies whose supply chains involve sourcing from or selling to the continent. Although the weak pound is currently providing support for some sectors, such as manufacturing and tourism, it is far from certain that this stimulus will be enough to counterbalance the adverse Brexit effects over the medium to long term.”