Business sentiment remains subdued as political and economic uncertainty weighs on confidence. Many business sentiment indicators underscore the prevailing uncertainty at regional, national and international levels, all pointing to flatter or slightly weaker expectations of current and near-term economic activity. Ongoing tension from slower global market conditions and trade, weaker investment intentions and international macroeconomic disagreemenrs all contribute to the sense of drift. Confidence remains negative on headline measures, with sales growth slowing and a subdued profit outlook. Investment plans are muted, reflecting a backdrop of uncertainty. Spare capacity is also emerging or already available. The surveys also confirm anecdotal information and trends reported by the Office for National Statistics (ONS) and the Bank of England in respect of GDP growth. Without stockpiling at the end of 2018 and early 2019 by firms across the UK in preparation for a 'no deal' Brexit in March, GDP growth would have been notably weaker. Latest GDP data confirms this dynamic.
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