Cazenove's Mui: Brexit stage left

How to create order amid a seemingly disorderly exit

The UK's growth figures for the past three months of 2018 were disappointing, ringing alarm bells about the economic fallout of a potential 'no-deal' Brexit, writes Janet Mui, global economist at Cazenove Capital Management.

The UK is facing the worst growth outlook since 2009 and almost every dataset is now weakening. Most notably, business investment contracted for the fourth consecutive quarter amid intensifying Brexit uncertainty and the prospect of no deal. Elsewhere, data showed the manufacturing sector entered a recession and construction output tumbled. Even the comparatively resilient services sector saw a drop in growth. We heard some high-profile announcements from companies moving operations or headquarters away from the UK and, according to the Purchasing Managers Survey, UK companies are ...