Brexit effect on UK economy may be worse than thought, says CBI

Survey finds majority of factory owners have cut investment, as insolvencies hit six-year high

A wave of corporate insolvencies, company profit warnings and a gloomy forecast of manufacturing investment over the next year has sparked concerns that Brexit uncertainty will weigh on the UK economy more than previously estimated.

A survey by the business lobby group the Confederation of British Industry (CBI) found that the prospect of leaving the EU's customs union and single market without a deal had led a majority of factory owners to cut back investment for the coming year.