B2B Economic Outlook - UK - December 2019
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“Despite the uncertainties surrounding Brexit, the UK economy has only slowed to equate to the growth of the Euro-area, and the Bank of England still anticipates stronger growth than the Euro-area over the next three years. The Brexit-related uncertainties continue, and are now potentially exacerbated by a General Election. They are widely blamed for investment malaise though this fails to take into account the huge change in technology investment that is rapidly transforming from a capital investment to a pay-as-you-go cloud model of computing.
The deterioration in UK productivity growth remains a critical issue, and reduced investment levels are heightening concerns of further problems in the future.
There is clear evidence that the effects of the economic uncertainty is disproportionately affecting the large companies and enterprises, while the SME sector has generally performed better, particularly micro companies with employees.
Construction growth has increasingly become sector specific, as is normal in a slowing economy, but some sectors such as infrastructure and public education and health are now subject to competing promises of increased expenditure by the two major political parties.”
– Terry Leggett, Senior B2B Analyst
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