Sector confidence falls to two-year low amid growing fears of no-deal Brexit: survey
CGA and Fourth reveal widespread concern about long-term impacts on food and labour costs and consumer confidence.
Business confidence amongst the leaders of Britain’s pub and restaurant groups has taken a hit amid fears about the long-term impact of Brexit, taking market optimism to its lowest ebb for two years.
According to the latest quarterly Business Confidence Survey from CGA and Fourth, 30% of industry bosses are currently optimistic about prospects for the general market, down by nine percentage points on the last survey three months ago.
The said figure is the lowest since November 2017, and the joint lowest since the EU Referendum in June 2016.
Operators’ confidence in their own businesses also dipped in recent months, with 58% of leaders are now optimistic about their firm’s prospects in the next 12 months, —seven percentage points lower from the last poll, its lowest point since late 2017.
The survey spotlights Brexit as the “overwhelming source of pessimism”, revealing that leaders are concerned about the long-term as well as immediate impacts of leaving the European Union. Whilst 44% said uncertainty around Brexit was their leading concern, more than half of respondents (52%) cited the potential consequences of departure as their biggest worry.
Almost three quarters (74%) of leaders say they are concerned about increased food costs post-Brexit, and nearly as many are worried about increased labour costs (72%) and a fall in consumer confidence (67%).
