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BizReport : Trends & Ideas : May 25, 2017

Brexit effect begins to show

New figures published by the UK's Office of National Statistics (ONS) show that the effects of Brexit on the economy are starting to show themselves.

by Helen Leggatt

According to law firm Pinsent Masons, first quarter figures released by the ONS show a slowdown in growth of service output, and a decline in growth in UK production.

"As we fast approach the general election and the all-important Brexit negotiation period, it may come as no surprise that the impact of such a seismic change in the UK is hitting the economy," said EU expert Guy Lougher of Pinsent Masons. "This will be concerning for UK big business but resilience and faith in London as a successful and lucrative global business hub is required."

However, while economists predicted business investment would be one of the first areas to show Brexit's impact, business investment (in real assets used in production, not financial assets) grew 0.8% in Q1 2017 (compared with growth of 0.5% during the same period last year.

Tags: Brexit, economy, UK

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