Economic trends: economy in limbo

The UK’s economy could steer clear of recession, but Brexit shockwaves still reverberate throughout the market as uncertainty about the economic outlook has caused growth to slow, says Chris Williamson, chief economist at Markit

The UK economy is in a state of limbo. As the government seeks to chart the route to Brexit, survey data indicates that heightened uncertainty about the political and economic outlook has caused the pace of economic growth to slow sharply.

While an imminent recession appears unlikely, a downturn next year cannot be ruled out, and will largely depend on Brexit negotiations. Economic models illustrate the extent to which growth next year could vary depending on the Brexit path the government decides to lead the country down.

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