Brexit dragged UK investments to the darkest places since the financial crisis

The uncertainty surrounding Brexit has dragged investment in the UK to the darkest places of the financial crisis a decade ago, leaving the economy with almost no force and momentum.

GDP grew by less than expected (0.2%) in the last quarter of 2018, while in December only the economy shrank with 0.4%, the most since the Brexit referendum in 2016. The pound fell 0.4 percent to $ 1.2897 in London.

This negativity came after businesses cut their investments for the fourth consecutive quarter, the longest similar period since 2008-2009.

The fear of the business is clearly illustrated this month, with the Japanese carmaker Nissan Motor Co. canceled plans to build a new model in Sunderland. Airbus SE, which makes wings for commercial aircraft in the UK, has also threatened to move its work elsewhere. Business investment fell by 0.9% in 2018.

Britain has to leave the EU in less than six weeks, and politicians have not yet agreed on a deal. As companies insist on more clarity and Bank of England manager Mark Carney warned of Brexit's damage to the economy, the report today stressed that the Westminster political quarrels were completely real.

The economy is facing its worst year of post-crisis growth, with economists warning of a recession if Britain leaves the EU without a deal to smooth the transition. BoE saw an increase of 0.2% this quarter, but the sudden loss of inertia at the end of 2018 suggests that the economy may go down.

Source: Bloomberg Finance L.P.

Original Post: U.K. Economy Wilts as Brexit Jitters Hit Business Investment

Chart: Used with permission from Bloomberg Finance L.P.

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