UK business survey reveals mixed Brexit picture

By Ahmet Gurhan Kartal

LONDON (AA) – A major U.K. business survey for the third quarter of 2016 released on Thursday has offered a mixed view of the British economy in the months following the Brexit referendum.

The British Chamber of Commerce (BCC) research -- released the same week the U.K.’s ambassador to the EU made a shock resignation -- said manufacturers had benefited from the weakened pound sterling as exports rose.

However, it suggested Brexit uncertainty had slowed services sector export orders.

More than 7,500 businesses participated in the survey.

The data suggest after the value of pound dropped nearly 12 percent since the June 23 referendum, exports rose accordingly.

“In the manufacturing sector, the balance of firms reporting improvements in export sales over the previous three months rose to +17 percent in Q3 2016 from +9 percent in Q2 2016,” the survey read.

“The balance of manufacturers reporting improved export orders also rose, from +5 percent in Q2 to +12 percent in Q3,” it added.

Thursday’s survey underlined BCC research which revealed a slowdown in services sector export orders as well.

“However, the services sector saw a slowdown in growth in Q3, with the balance of firms reporting improvements falling to +8 percent from +11 percent in the previous quarter,” it said.

The uncertainty caused by the British electorate’s decision to leave the U.K. continued this week as the country's top envoy to the European Union -- Sir Ivan Rogers -- resigned on Tuesday, ahead of upcoming Brexit negotiations.

Sir Ivan, who previously claimed agreeing a final post-Brexit trade deal with the remaining EU states could take up to 10 years, was replaced with Sir Tim Barrow.

Prime Minister Theresa May insists her government will trigger Article 50 of the Lisbon Treaty, which will formally initiate the country’s exit from the 28-member bloc, despite a U.K. High Court ruling which says British lawmakers must first consult.

The May government appealed this ruling at the Supreme Court, which took it up in December 2016. A final decision is due on Jan. 9.