EY ITEM Club slashes UK 2016 GDP forecast to 1.9% vs 2.6% prior

The latest forecast for UK financial services from Ernst & Young ITEM Club on the UK economy is found below:

"The recent decision to leave the EU has clouded the prospects for the economy and for financial services, just when the fundamentals were looking positive.  Consequently the latest ITEM Club Outlook for financial services presents a less certain picture than my first Outlook as EY's UK FS Managing Partner six months ago.”

“For financial services, much of the uncertainty surrounds the timetable for the UK to exit the EU, the manner in which it will do so, and the terms that can be agreed. Very few will be making substantial decisions until a clearer view emerges.  For now it's the second order effects of the referendum result that firms are contending with - notably the impact on the UK economy and consumer confidence." says Omar Ali at EY.”

“Last month, the main ITEM Club UK outlook saw them cutting GDP to 1.9% from 2.3% for 2016, and 2.6% to 0.4% for 2017.”