According to a report published by KPMG UK today
The report shows that 68% of UK firms surveyed said they would prefer legal certainty on transition by next month with a less ambitious future deal, rather than a more comprehensive Brexit deal that is not reached until much later in the future.
The survey was conducted on 280 CEOs and CFOs from medium to large sized UK companies between 28 Feb and 7 March.
Other results of the survey also show that for one in five firms, business will be disrupted should there not be a transition deal by March 2019. But the respondents of the survey are rather optimistic that a deal will eventually be struck, with 67% saying that they are confident that the UK will secure a long-term Brexit deal with the EU before the March 2019 deadline.
Optimism aside, it’s not surprising the people want more clarity over the situation and more importantly, they want certainty. It’s something that financial market participants can relate to as well, as certainty surrounding anything is important towards affecting sentiment.
And sentiment among UK businesses haven’t been too positive for quite a while now. A report released by Markit earlier today on business outlook in the UK showed that while business confidence has improved since Q4 2017, the level of optimism remains among the lowest recorded over the past five years.
And that will feed through to the economy and dampen growth too — more than it has done already.