UK CBI: Growth softens at fastest rate in seven years as optimism falls

UK consumer services firms optimistic about the business situation in August was -37 vs +9 in May before the European Union referendum vote, according to the CBI.

As the UK Independent notes: "Optimism in the UK’s dominant service sector has fallen at its fastest rate in seven years in the wake of the Brexit vote according to the latest quarterly survey from the CBI."

Anna Leach, CBI Head of Economic Analysis and Surveys, said: “Whilst the service sector has been rocked by the stormy waters of Brexit, especially when it comes to firms’ sense of optimism, the actual slowdown in growth on the office and shop floor has been relatively modest."

Leach adds: “It’s encouraging that employment numbers have remained robust, especially in the consumer services sector. But looking ahead, the service sector faces a challenging environment in which to grow and invest, with uncertainty about demand weighing on firms’ minds."

“To shore up confidence across the economy, the Government must clearly communicate plans for negotiations to leave the EU, and demonstrate its commitment to stimulating growth and driving investment with an ambitious Autumn Statement", Leach added.