The confederation of British industry (ConfederationofBritishIndustry) said on Sunday that the private sector has experienced the worst three months in nearly seven years, Britain withdrew the deadlock and severe weather hit the economic growth.
Private sector activity surged earlier this year as companies piled up inventories ahead of the original March 29 brexit deadline, but in the three months to June it contracted at its fastest pace since September 2012.
Rainnewton-smith, CBI chief economist, blamed the surge in inventories, brexit-related shutdowns in the UK car industry and the fallout from bad weather.
“But underlying activity and confidence is clearly subdued,” she said. “uncertainty about the UK’s relationship with the eu is killing the UK economy.The new prime minister desperately needs a deal with the eu.”
Britain’s conservative party will announce its new leader on July 23rd, who will become the next prime minister.Both candidates – former foreign secretary Boris Johnson and current foreign secretary Jeremy hunt – have said they are prepared to lead Britain out of the eu without a deal if necessary.
The bank has said it expects zero growth in the second quarter as the impact of the first three months of the year’s inventory build-up fades, uncertainty over the outcome of brexit and slowing global growth.