Peter Hemington

Manufacturing Industry Hits Four Year Low With ‘Gloomy’ Output Prediction

Manufacturing Industry Hits Four Year Low With ‘Gloomy’ Output Prediction

Optimism among the UK’s manufacturing industry has slumped to a four-year low, as businesses prepare for life outside the EU – a report by BDO LLP has claimed. The Business Trends Report which surveyed over 4,000 enterprises revealed a ‘gloomy’ outlook for the sector with its optimism sub-index dropping down to 81.0 – with a score of 95 indicating contraction. General business confidence has also fallen to its lowest in three years, however the monthly drop is less severe than previous reports   – suggesting the UK’s decision to leave the European Union has made less of a negative impact than first predicted. Despite the negative trend, it’s suggested that the drop in value of the pound presents an opportunity for businesses to increase exports with overseas companies now able ... »

Research Suggests UK Economy Showed Signs of Slowing Before Brexit

Research Suggests UK Economy Showed Signs of Slowing Before Brexit

The UK economy was already showing signs of slowing down before the Brexit vote, according to a report from BDO LLP. Its Business Trends Report has revealed that “rising uncertainty” ahead of the EU referendum dragged down business output and optimism to three-year lows for the second month running. Business output – intended to reflect the order pipeline of companies over the next three months – was found to have dropped to 99.0, compared to 104.1 a year ago. Business optimism – predicting business growth over the next six months – also fell; down to 98.9 from 103.9. The UK manufacturing optimism sub-index slumped to 83.8, suggesting tough times ahead for those businesses in the manufacturing industry. Furthermore, small firms’ intentions to recruit more staff has ... »

UK Employment Growth Hits Two Year Low

UK Employment Growth Hits Two Year Low

The hiring intentions of UK businesses have hit a two-year low with the economy having witnesses the biggest monthly drop in employement grown since since the aftermath of the recession in 2008, according to a report by BDO LLP. The BDO’s latest report reveals that its ‘Employment Index’, which tracks the hiring intentions of small firms over the coming six months, has dropped from 104.8 to 102.2. The recent introduction of the National Living Wage – making employment more expensive – and uncertainty over the UK’s EU membership are suggested as possible reasons for the suspected slowdown in recruitment. Despite the negative trend, one interpretation of the data suggests that British small businesses could finally be experiencing increased productivity. Peter H... »

UK Economy Growth Halted as Services Sector Slows Down

UK Economy Growth Halted as Services Sector Slows Down

The UK economy is experiencing halted growth due to the services sector slowing down, according to a report out this week by BDO LLP. The survey shows that the service sector’s “stagnant” growth is affecting the confidence of UK businesses, with business optimism at its lowest in more than two years. BDO’s Output Index – which reflects companies’ experience of orders for the coming three months – has dropped from 101.7 in February to 101.3 in March this year. While BDO’s Optimism Index – which predicts growth six months ahead – has fallen to 99.4. BDO has reported that a lack of investment due to uncertainty of the UK’s EU membership has been a factor in the decline, with firms opting to delay spending until after the EU Brexit referendum on June 23. The outlook is even w... »

UK Small Business Confidence Falls to Three Year Low

UK Small Business Confidence Falls to Three Year Low

Confidence amongst UK small enterprises is at a three-year low, according to BDO’s Business Trends survey. The report – which predicts growth six months ahead – found that confidence levels have declined to 100.0, the tipping point below which small businesses can expect their output growth to drop under the long-term trend rate. The survey claimed that global economic fears and the upcoming EU referendum are further fuelling uncertainty and causing business confidence to dip. The report comes just days after a similar report found that UK small business confidence has plummeted. Peter Hemington, partner, BDO LLP, said: “Global headwinds are finally hitting business confidence and the added uncertainty of EU referendum just round the corner is fuelling concerns.” »

UK Business Confidence “at its Lowest”

UK Business Confidence “at its Lowest”

Small business confidence is at its lowest in over a year, according to the BDO’s latest Business Trends Report, as investment and output drops. Based on its ‘Optimism Index’ which predicts growth six months ahead, business confidence in the economy  is now only just above the average at 101.0 and, although higher at 103.3, sales orders for the next three months is also on a “downward trend” The rate of growth in employment is also dipping, Employment, coming in at 105.2 – the lowest level recorded by BDO since 2014. The report suggests that the drop in business confidence and investment will have a negative effect on the UK’s overall economic growth in 2016. Commenting on the findings, Peter Hemington, partner at BDO LLP, said: “Doubts about the world economy are making the UK’s business ... »