UK Slump Improves After Referendum Exit

The proportion of business pessimistic about the fate of their businesses had fallen to 45 per cent in August after its high in July. However, the pessimism rate is still above the 25 per cent in June before the business referendum.

British businesses are still pessimistic about the country’s economic outlook.

The proportion of businesses that were optimistic about their own prospects over the next 12 months rose to 48 percent in August, up from 46 percent in July, according to the monthly survey conducted by YouGov and the Centre for Economics and Business Research (Cebr).

The overall confidence index reached 109.7 in August from 105.0 in July, regaining much of the ground it lost immediately after the UK voted to exit the European Union on June 23, when it fell from June’s 112.6.

According to UK Prime Minister Theresa May, she will not start the formal divorce procedure by triggering Article 50 of the EU Lisbon Treaty until next year. Her cabinet is planning a negotiating stance that follows the same timeline.

“Once the UK shows its hand on Brexit and invokes Article 50 things could change for the worse quickly,” said Stephen Harmston of YouGov. “But as businesses and consumers don’t know when this will happen, they have seemingly decided to just get on with it.”

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