Business Investment to Decline Through 2019: BCC
Business investment by British companies is expected to decline by 1.3% in 2019, and register a mere 0.4% growth in 2020
According to a survey by the British Chamber of Commerce, business investment by British companies is expected to decline by 1.3% in 2019, and register a mere 0.4% growth in 2020. This is the most significant decline in investment by businesses in the UK, and it’s all because of Brexit uncertainties that drag on.
On the plus side, the BCC has revised its economic growth forecast for this year slightly higher to 1.3%. However, stockpiling by firms ahead of Brexit are mainly responsible for this. Meanwhile, the BCC has revised 2020’s growth forecast from 1.3% down to 1%, while it expects economic growth to stand at 1.2% in 2021.
2018 was also a bad year as far as business investment in Britain was concerned. This figured kept declining all through the year, but picked up a little during early 2019. Now with Brexit getting delayed to October 31, the sentiment has soured again, especially over an increased possibility of a no-deal Brexit taking place.
On Monday, GBP/USD continues to trade bearish, staying under the 1.26 level at the time of writing.
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