FINANCE UK business optimism is still high
The Brexit and Trump effect have not dented UK business optimism as manufacturing confidence has reached a 20-month high, according to the latest Business Trends Report by accountants and business advisers BDO LLP. The latest report shows
continuing signs of encouraging economic prospects for the UK over the coming six months, despite uncertainty following the US Presidential Election and the UK’s decision to leave the European Union. BDO’s Optimism Index, which indicates how firms expect their order books to develop in the coming six months, continues to rise and now sits at 103.7 from 102.2 in December, above its long- term trend. The Optimism sub-indices for
both manufacturing and services were also higher last month, dismissing claims that the UK has a two-speed economy. Manufacturing’s sub-index has risen to 102.2 from 99.4, passing the 100 mark, which indicates growth, for the first time since June 2015. BDO’s Output Index - which
indicates how businesses expect their order books to develop in the next three months - has increased
While currency depreciation makes British exports more price competitive, firms’ input prices have risen sharply, squeezing margins. In January, Markit/CIPS PMI showed factory raw material costs rose at their fastest pace in over 25 years, a result of higher prices for oil, steel and other import costs. Tom Lawton (pictured), Partner
‘The UK economy seems to be remarkably resilient. British businesses are surprisingly confident about the short term’
for the third consecutive month, rising slightly from 97.4 to 97.5. BDO attributes the positive performance of UK businesses to an overall improvement in the global economy, the decrease in the value of sterling and better- performing key export markets. However, despite the immediate
The BUSINESS NETWORK APP provides you with a fast, free and convenient way to read the latest Chamber news on the go.
network BUSINESS
benefit of sterling’s sharp fall in value and the optimistic mood of UK businesses, sterling’s devaluation represents a double- edged sword as it continues to contribute to rising inflation. BDO’s Inflation Index has
increased to 104.5 from 103.8 and the upward trend is set to continue.
and Head, BDO Manufacturing at BDO LLP in the Midlands, said: “The UK economy seems to be remarkably resilient. British businesses are surprisingly confident about the short term, encouraged by the opportunities our cheaper currency and a better-performing global economy have created. These have provided a much-needed short-term boost for our economy, particularly our manufacturers. “However, Government still has
much to do in these uncertain times if the UK is going to stay on the right economic track. “The modern industrial strategy
could be a step in the right direction. More importantly, simplifying regulation and taxes, and improving our education and training systems are high priorities for businesses in the new economy.”
‘THE BESTWAY TO KEEP UP TO DATE’
FOR CHAMBER NEWS STRAIGHT TO YOUR SMART PHONE OR TABLET, DOWNLOAD THE BUSINESS NETWORK APP
Providing a digital version of BUSINESS NETWORK across all platforms, including iPads and iPhones, and reaching a wider audience of readers.
Members can stay connected thanks to push notifications to alert readers when the latest edition is available and live links to all emails and websites.
business network April 2017
53
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
