Post-election dip in business confidence

“Business sentiment has been on a rollercoaster in the last 18 months, slumping in the aftermath of the referendum, staging a strong recovery and then falling again in the wake of the general election.

“This latest dip likely reflects the outcome of the election and concerns about UK growth, which are now at a two and a half year high. Domestic concerns top the list of risk factors facing UK businesses, with growth in emerging markets and the euro area now towards the bottom.

“Despite the knock to confidence, sentiment and risk appetite are well above the levels seen last summer. Favourable financial conditions and an improving global backdrop do offer CFOs some cushion from the effects of domestic uncertainties.”

Ian Stewart, chief economist at Deloitte

“Despite the outcome of the general election causing speculation about whether we could see a closer long-term relationship between the UK and EU, CFO’s concerns about Brexit have grown. More CFOs now see Brexit slowing business investment and hiring, as well as an overall weaker business environment once the UK leave the EU.

“This underscores the importance of the Brexit negotiations producing a favourable business environment for UK businesses, with access to the skills and markets they need for their future success.”

David Sproul, senior partner and chief executive at Deloitte