Wednesday 20 July 2016 10:18 am

Bank of England: "No clear evidence" of business slowdown since Brexit vote (yet)

The Bank of England has said there is "no clear evidence" yet of a slowdown in business activity since the Brexit vote.

But it also noted that "business uncertainty had risen markedly" after the referendum.


In its monthly agents' summary of business conditions, the Bank said: "As yet, there was no clear evidence of a sharp general slowing in activity."

Read more: Bank of England MPC members want more than just lower interest rates

The report also said: "Following the EU referendum, business uncertainty had risen markedly.

"Many firms had only just begun to formulate new business strategies in response to the vote and, for the time being, were seeking to maintain 'business as usual'.

"A majority of firms spoken with did not expect a near-term impact from the result on their investment or staff hiring plans.

"But around a third of contacts thought there would be some negative impact on those plans over the next twelve months."

Read more: BoE's Haldane wants "muscular" easing to help economy post-Brexit vote

The July report said it covered business conditions in the month preceding the EU referendum. But it also provides a "summary of intelligence gathered" after the vote.

In the month leading up to the Brexit vote, the Bank said activity growth "had remained moderate and little changed".

It added: "Consumer spending and construction output growth had eased a little, offset by a pickup in manufacturing growth from a low base.

"There had been further signs of uncertainty leading to delays in decision-taking, including on capital spending, hiring and property investment."