General election 2017 results: Business confidence 'through the floor'

Business confidence is "through the floor" following last week's general election, reports the BBC.

A "snap poll of 700 members of the Institute of Directors (IoD)" found a "dramatic drop" following the result, which left the UK with a hung parliament.

"Members saw no clear way to resolve the political impasse quickly", adds the BBC, but there is "no desire" for another election this year, with business leaders feeling this would be "negative for the UK economy".

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Theresa May proposed deal with the Democratic Unionist Party to cling to power in a minority government is expected to be a far less stable arrangement than prior to the election.

It could also mean the Tories having to make significant compromises on their manifesto, not least on Brexit.

In one sense, businesses have been emboldened by the election result and are calling for a softer exit from the European Union.

IoD members want "a rapid agreement with the EU on transitional arrangements for Brexit, along with clarity on the status of EU workers in the UK", says the BBC, adding: "A separate survey of more than 50 medium-sized businesses and trade associations by the Harvard Kennedy School of Business found that 'almost all' expressed a preference for remaining in the single market and customs union."

However, Sir Martin Sorrell, chief executive of advertising giant WPP, told City AM he felt the election meant that "paradoxically", the chances of both a soft Brexit and a "no deal" scenario have both increased.

Basically, the Tories now have less of a mandate for a hard Brexit, but also less parliamentary stability to secure any deal at all.

Meanwhile, because the "election outcome will complicate and probably delay Brexit negotiations", it is "credit negative" for the UK, according to Moody's, reports The Guardian.

The ratings agency also believes the "election outcome, with significant gains for the Labour Party which had campaigned for increased public spending, will [mean the] public debt ratio will rise further and for longer than we had expected".

This is also seen as negative for the UK credit rating as it will place "the UK among the few highly rated European sovereigns whose public debt is still rising".