Business investment has unexpectedly held up since the Brexit vote

Business investment has unexpectedly held up since the Brexit vote. Can it last?

IT WAS sure to slump. Following the Brexit referendum of June 2016, many economists expected that shrinking investment would push the economy into recession. Some saw investment falling by nearly a tenth in 2017, similar to when the financial crisis hit in 2008-09. Foreign direct investment (FDI) was also expected to dry up, especially after Theresa May, the new prime minister, promised a “hard Brexit”, leaving the EU’s single market.

Try telling that to David King of Makar Technologies, a small electronics manufacturer near Inverness. The firm has just one site but in the next 12 months will open new ones in Edinburgh, near Exeter and near Cambridge. It plans to employ 40 people, up from 12 today. Asked how Brexit affects his expansion plans, Mr King’s response is simple: “It doesn’t.”

His is not the only company pressing on with its investments. In July Amazon, the online-retailing behemoth, announced that it would take all 15 storeys of the Principal Place…Continue reading

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