Business confidence hits 22-month peak as owners prepare for growth
Business confidence in the private sector has reached its highest level since June 2015, according to new data that reveals positive expectations for growth among owners.
The business outlook survey, by analytics firm IHS Markit, used responses from company owners to calculate a confidence level of +52 per cent a sharp rise from the +39 per cent registered in October 2016, a four-year low for the survey.
The figure represents the percentage of firms expecting an increase in business activity against those braced for a decline.
The results could suggest that post-Brexit vote blues are over for many owners, as IHS Markit highlighted a ‘sharp rebound? in workforce expansion plans.
Business owners also cited investment in technology and new product lines as key growth drivers for their company.
At +55 per cent, UK manufacturers registered the strongest expectations for business activity in 2017, as further research revealed boosts to both domestic and international sales for small manufacturing firms.
UK business confidence also scored favourably against competing European economies. British business owners were more positive than counterparts in Germany, France, Italy and Spain.
Commenting on the data, Tim Moore, senior economist at IHS Markit, said business confidence among owners had become much more positive.
the resilient domestic economic backdrop has been a key factor driving the rebound of business confidence among UK private sector companies. While a number of firms cited heightened uncertainty about the path to Brexit, it seems clear that these concerns have receded in comparison to the projections reported last autumn, he said in a statement.
However, Moore noted that rising prices of imported materials and the weakened exchange rate would start to increase costs for owners.
as a result, UK firms are expecting to increase prices charged at the fastest pace since the survey began in late-2009, he added.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
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