Concerns of Bank’s business contacts underline challenge Brexit poses for Britain’s powerhouse services sector

Commenting on the findings published today (Wednesday) in the Bank of England’s Agents’ Summary of Business Conditions report, Matt Whittaker, Chief Economist at the Resolution Foundation, said:

“Concerns raised by firms in today’s report underlines the big challenge Brexit poses for the services sector, which is being hit by a loss of confidence without benefiting from weaker sterling.

“In the short term, we’re seeing the first signs that the current economic uncertainty is feeding through into people’s job prospects, particularly in the services sector. The even bigger challenge facing these firms is how Britain negotiates its trading relationship with Europe. Losing access to the single market could lead to a large, permanent shock to Britain’s powerhouse services sector.

“British trade policy has gone from being the long-forgotten man of public policy to one of the most important determinants of our future economic prospects.”