We have seen dramatic changes for the UK since our last newsletter with the Brexit vote, a new Prime Minister and several interesting changes in the cabinet. How this pans out for the economy remains to be seen and it is apparent from the various reports from different sectors that reactions and effects are very mixed.
According to the pre Brexit statistics, as reported by the Office for National Statistics, we saw an overall slow to the economy in the first quarter however in the quarter leading up to the Brexit vote the economy grew by 0.6% although most of this growth appears to have occurred in April. Encouragingly some of this growth was in the industrial sector with the service sector also continuing to grow.
Some commentators have predicted a downturn in the economy following the Brexit vote and some early statistics seem to support this view. In contrast the recently published Purchasing Managers Index survey showed positive signs but we have also had contrasting statements from the Prime Minister and her ‘Brexit Minister’. It is evident therefore that it is far too early to know or predict the full effects of these recent changes and uncertainty remains.
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In terms of the insolvency landscape, generally speaking formal insolvencies are at relatively low levels although according to the latest statistics from the Insolvency Service, personal insolvencies have risen on the same period last year with most of that rise being seen as an increase of 15% in individual voluntary arrangements.