ES News email The latest headlines in your inbox twice a day Monday - Friday plus breaking news updates Enter your email address Continue Please enter an email address Email address is invalid Fill out this field Email address is invalid You already have an account. Please log in Register with your social account or click here to log in I would like to receive lunchtime headlines Monday - Friday plus breaking news alerts, by email Update newsletter preferences

The Governor of the Bank of England today issued a bleak warning about the impact of a no-deal Brexit saying that food and petrol prices will rise “instantly” and “very big” industries struggle to remain profitable.

Mark Carney said a shift to World Trade Organisation tariffs on the current Brexit deadline of October 31 would deliver huge “challenges” for the British economy.

His comments came as the latest survey of construction industry bosses showed the sector’s output contracted for the third month on the trot in July.

The figures from analysts IHS Markit are the latest to suggest that economic growth is slowing markedly, largely over fears about Brexit.

Mr Carney told the Today programme: “The economics of no-deal are that the rules of the game for trade - exporting to Europe or importing from Europe - fundamentally change.

“There are some very big industries in this country where that which is highly profitable becomes not profitable, becomes uneconomic, and very difficult decisions will need to be taken. That has knock-on effects on the economy in the short term.”

He added: “One would expect prices to go up. It’s reasonable to expect, the markets are absolutely clear on this, that in the event of no-deal the exchange rate would go down for a period of time.

“And the area of the economy where that instantly translates into prices - it’s at the forecourt of the petrol station and in fruit and veg.”