KPMG has cut its short-term growth forecasts for the UK following continued uncertainty around Brexit.
The firm expects the UK economy to grow by 1.2% in 2019 if a Brexit deal is reached. It has previously forecasted 1.6% growth.
Yael Selfin, chief economist at KPMG UK, said: “The lack of clarity around Brexit, the disappointing data in the Eurozone, the waning stimulus in the US and a slowdown in China are making for a challenging environment.
“This cocktail of uncertainty and dwindling short-term prospects has also had a knock-on effect on business investment, which has continued to slump and is expected to shrink by 0.2 per cent in 2019 as a whole, as businesses choose to further postpone their investment plans.”