Uncertainty around Brexit has dragged UK business output and optimism to three-year lows, a report suggests.
The
report on business trends from the accountancy and services group BDO
said the UK economy was already showing signs of slowing ahead of the EU
vote.
Manufacturing had the gloomiest outlook, and job creation in the economy slowed to a two-year low.
BDO's Peter Hemington said uncertainty prompted by Brexit had also disrupted investment in the UK economy.
The
report shows business output, which reflects company orders for the
next quarter, slipped to 99 last month, compared with 99.7 in May and
100.6 in April.
Meanwhile, business optimism also slid, falling to 98.9 in June from 99.4 in May.
'Crucial moment'
But
Mr Hemington added: "In all likelihood, whatever arrangements the UK
eventually arrives at with the EU won't look very different from what we
have at the moment.
"So businesses cannot afford to get caught up in the hysteria. They need to hold their nerve and continue to invest in the UK.
"We
are at a crucial moment where we must be sensible in protecting the UK
economy. We need a plan of action now that gives businesses the added
confidence to progress with investment plans."
BDO's research is based on the results of the UK's main business surveys
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