Brexit uncertainty has hit UK business, says BDO

BDO says UK business needs to hold its nerve and continue to invest

Uncertainty around Brexit has dragged UK business output and optimism to three-year lows, a report suggests.

The report on business trends from the accountancy and services group BDO said the UK economy was already showing signs of slowing ahead of the EU vote.

Manufacturing had the gloomiest outlook, and job creation in the economy slowed to a two-year low.

BDO's Peter Hemington said uncertainty prompted by Brexit had also disrupted investment in the UK economy.

The report shows business output, which reflects company orders for the next quarter, slipped to 99 last month, compared with 99.7 in May and 100.6 in April.

Meanwhile, business optimism also slid, falling to 98.9 in June from 99.4 in May.

'Crucial moment'

But Mr Hemington added: "In all likelihood, whatever arrangements the UK eventually arrives at with the EU won't look very different from what we have at the moment.

"So businesses cannot afford to get caught up in the hysteria. They need to hold their nerve and continue to invest in the UK.

"We are at a crucial moment where we must be sensible in protecting the UK economy. We need a plan of action now that gives businesses the added confidence to progress with investment plans."

BDO's research is based on the results of the UK's main business surveys