A new study shows that growth in the UK economy has practically “ground to a halt” due to the lack of clarity surrounding Brexit.
The British Chambers of Commerce (BCC), who produced the report, concluded that exports, orders, investments, and cashflow have all been affected by the uncertainty over the UK’s relationship with the EU.
Surveying 7,000 businesses with one million workers collectively, the results highlighted how services and manufacturing firms were being negatively impacted.
Looking at the first three months of the year, the BCC said that the study indicated that businesses were “hitting the brakes.”
The BCC has called for an end to the lack of clarity and the “relentless uncertainty” over Brexit, which it says has hurt investment plans and business confidence.
Head of economics for the BCC, Suren Thiru, said: “"Our latest survey suggests that UK 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 in almost all the key indicators in the quarter.
"The services sector suffered the more substantial loss of momentum in the first quarter, with both domestic and international activity slowing sharply in the quarter.
"The manufacturing sector continues to struggle amid tougher global and domestic trading conditions and rising cost pressures.
"The 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."
Dr Adam Marshall, director general for the BCC, added: "Our findings should serve as a clear warning that the ongoing impasse at Westminster is contributing to a sharp slowdown in the real economy across the UK. Business is hitting the brakes - hard.
