Businesses Unfazed by Election Uncertainty as Optimism Remains High
Overall business confidence is up as firms expect economic growth and hiring intentions remain positive
UK firms appear to be undisturbed by the current political uncertainty, with the majority remaining cautiously optimistic for economic growth, according to accountancy firm BDO’s Business Trends report.
Both the BDO’s Output and Optimism Indices (predicting three and six month’s economic growth) remained high at 102.9 and 104.4 respectively – representing an increase above the long-term trend rate. Furthermore, many businesses are planning to expand in the imminent future, with employment predictions also above the norm at 111.6.
The report revealed that confidence is particularly high in the manufacturing industry (a trend which was also found in a report released last week) with the research attributing this positivism to low oil prices and inflation, established wage increases, and the potential for consumer spending growth.
Peter Hemington, partner at BDO LLP, discussed the findings:
“This month’s Business Trends report shows that businesses can and will tune out of the parties’ electioneering to focus on what really matters – their business prospects. By discounting the political noise and taking a realistic view of the economy’s strengths, businesses are remaining cautiously optimistic.
“Businesses are worried less about the detail of which candidate will get the keys to Number Ten and more about the country’s long-term economic prospects. And in the meantime they are focusing on their own businesses and keeping rightly positive.”