UK Business Confidence “at its Lowest”
Small and medium firms are becoming uncertain about their ability to grow in the New Year and are scaling back investment as a result
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 people question whether now is the time to ramp up their investment plans.
“We need to see the government’s messaging around supporting the manufacturing economy backed up with action to give businesses the confidence to invest for the future.”