The mood is undoubted that people want to do a deal with UK: Hammond

British finance minister Philip Hammond said the European Union was in the mood to do divorce deal, though he said uncertainty over Brexit had already hit the United Kingdom's economy.

"The mood is undoubted that people want to do a deal with the UK," Hammond told the BBC on Monday. "Clearly there has been a hit to the economy through the uncertainty that the Brexit process has caused."

"Many businesses are sitting on their hands frankly waiting to see what the outturn of this negotiation is before confirming their investment plans," he said. "I believe when the prime minister lands this deal and brings it back there will actually be a boost to the economy."

(With inputs from agencies.)