DHAKA: UK business confidence has fallen sharply in the aftermath of the vote to leave the EU, research suggests.

The share of businesses that reported feeling pessimistic about the UK economy doubled in the week after the Brexit vote.

The figure jumped from 25 percent the week before the referendum to 49 percent, according to YouGov and the Centre for Economics and Business Research.

Falling confidence can lead companies to pull back on investment and hiring, reports the BBC.

Scott Corfe, director at the CEBR, said that the figures indicated a “significant shock reaction” among UK businesses following the vote last month.

Corfe told BBC Newsnight: “Businesses are clearly spooked by the referendum result and they’ve reined in their intentions for capital spending. They’ve reined in their expectations for exports and domestic sales growth.

“And business confidence is a leading indicator for where the economy is heading over the coming quarters. What it suggests is that the economy is in for quite a significant slowdown over the next three to six months.”

The figures suggest that businesses have become more cautious in their outlook for sales and exports, as well as rethinking their investment plans.

BDST: 1030 HRS, JULY 5, 2016
BD