“August PMI figures point at a pick-up in business expectations following the initial shock of the EU referendum result. Reaping the benefits of a significantly weaker pound, the UK economy was boosted by a lift in exports and in inbound tourism revenue. The early formation of a new Government, and the swift actions by the Bank of England have also proved decisive in calming business nerves. However, with inflationary pressures on the rise while the economy starts to steady, the Bank of England may choose to pause before taking any further steps.
“As a result, the outlook for the third quarter is for a weaker though more resilient economic performance than previously forecast. However, volatility is expected to remain high as businesses react to Brexit plans and to new economic data as it emerges.
“Overall, the outlook remains extremely uncertain and we advise businesses to take into account a range of economic scenarios when considering their strategy for the coming years.”
For further information please contact:
Jess Liebmann, KPMG Corporate Communications
Tel: 0207 311 3245
Mobile: 07551 135778
KPMG Press office
Tel: +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.