UK investor confidence slumps over weak growth fears
Research by Hargreaves Lansdown showed optimism fell globally – but the UK was among the worst hit countries.
Confidence in Britain's economic growth tumbled 16 per cent to a four-month low in the first week of August amid 'ongoing concerns over the country's economic trajectory', the broker said.
It follows a slew of gloomy data that showed the UK economy shrank for the second month in a row in May and inflation hit a 17-month high of 3.6 per cent in June.
The investor confidence score of 74 in August was the lowest since April in the aftermath of Donald Trump's 'liberation day' tariff threats.
Investors were also cautious about London's stock market which has suffered an exodus of firms to overseas listing venues.
Uncertainty over whether Rachel Reeves will hike tax in the upcoming Budget contributed to the decline in confidence, Hargreaves Lansdown said.
The Chancellor faces a potential £50billion fiscal black hole, experts say, which looks likely to force her to stage a tax raid this autumn.
Kate Marshall at Hargreaves Lansdown said: 'Weak GDP growth, mixed messaging on fiscal plans and wavering political clarity post-election have all added to investor caution.'
Investor confidence in Europe also fell by more than 16 per cent amid fears over economic stagnation.
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