Posted on Thursday 17 January 2019 by John Mulgrew

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Confidence in the UK’s economy dropped sharply in the last quarter of 2018.

That’s according to the latest Global Economic Conditions (GECs) from ACCA (the Association of Chartered Certified Accountants) and IMA (Institute of Management Accountants).

And overall, confidence in the UK fell sharply and is now at a record low since GECs began in 2009.

Uncertainty over Brexit "reached extreme levels and affected economic activity and confidence with business investment now on a declining trend", it says.

"However, despite the Brexit uncertainty, economic fundamentals are in relatively good shape with inflation drifting down towards the target, a buoyant labour market and a revival in wage growth."

Narayanan Vaidyanathan, head of business insights at ACCA, said: "At the start of 2018, GECs results for the UK showed the country’s highest level of confidence since Q1 2017. But over 2018, we’ve seen UK sentiment plummet to reach the end of the calendar year at its lowest point.

"The slump in confidence comes amid extremely high uncertainty over the outlook for Brexit. As it stands there remains a range of possible outcomes with the UK due to leave the EU on 29 March: projections for the economy beyond this date are pure conjecture.

"Only a disorderly no deal outcome would have the potential to trigger a recession and even this would probably be relatively short-lived – offset by a monetary and fiscal policy response.”

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