Engulfed by Doubt, Top UK Firms Shelve Spending Plans After EU Vote – Deloitte

July 18, 2016 Share Print 0

Britain’s biggest companies are beset by doubts about the future after last month’s vote to leave the European Union and have slashed their investment plans, according to a survey on Monday that bodes poorly for the economy.

Some 82 percent of chief financial officers from FTSE 350 and large private companies expect to cut capital spending in the next year, the biggest proportion on record and up from 34 percent in the first quarter, accountancy firm Deloitte said.

Its survey is one of the first clear signs the vote to leave the EU has battered business confidence, and corroborates the Bank of England’s view that the economy is set to weaken soon.

Reuters

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Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.