The new Chancellor, Philip Hammond is out gaining trust from SMEs across the UK by comforting those fearful of the impact the Brexit may cause.
On the 22nd of July 2016, Hammond revealed his pledge to help SMEs gain opportunities across seas in China. Whilst visiting China Hammond said;
“My focus in China will be on promoting British business opportunities, including in the financial services sector, where Britain is a world leader. Britain is open for business and one of the most attractive destinations in the world for international investment.
“We have built a strong economic relationship with China and as Chinese investments into the UK continue to diversify and as UK exports grow, Sino-UK relations are more important than ever.
“In the last few days alone we have seen the Australian Prime Minister says he wants a new trade deal with Britain – and Japanese technology firm Softbank announce plans for a record investment in the UK. This I all evidence that our economy is fundamentally strong and well equipped to adapt to the change that will be necessary as we leave the EU.”
However, the news which seems to be positive was announced a day after the UK found that leaving the EU has caused a ‘dramatic deterioration’ within the economy which hasn’t been seen since the outcome of the financial crisis.
Data taken from the IHS Markit’s Purchasing Manager’s Index (PMI) found a fall to 47.7 during July – the lowest since April 2009, any reading below 50 implies a contraction.
Whilst in Beijing Hammond pushed his concern;
“Let’s be clear, the PMI data is a measure of sentiment, it’s not a measure of any hard activity in the economy.
“What it tells us is business confidence has been dented, they’re not sure, they’re in a period of uncertainty now.”
Featured Image: By Foreign and Commonwealth Office Creative Commons via Wikimedia Commons