A global economist has warned that the impact of the UK’s departure from European Union is finally starting to bite.
James Knightley, senior economist at ING, told delegates at My Home Move’s annual conference there is a nervousness creeping in among British and foreign corporates.
He said: “We are starting to see more businesses sit on their hands in terms of hiring and investment spending.
“So we are generally starting to see and feel a loss of momentum.
“There is a general sense building that the tough times may be on the verge of coming through.”
Economists have been labelled doom merchants up to now for predicting a sharp Brexit slowdown which has yet to significantly materialise.
Knightley told the crowd the value of everything produced in the economy grew much slower than expected in the first quarter of this year, while the cost of goods and services are rising faster than wages.
He added: “My fear is we are going to get a return of the cost of living crisis that was such a big theme ahead of the last election in 2015.”