UK business hangs on despite stormy times ahead

UK business is managing to keep its head above water, showing surprising resilience in the face of a multitude of global economic pressures such as the rise in oil prices and the credit crunch, according to the latest report from accountants and business advisors, BDO Stoy Hayward.

BDO Stoy Hayward LLP, Press Release - 28/11/2007

The BDO Business Trends report, which pulls together all of the main business surveys from the last month, shows that business confidence in the short and medium term remains robust. Although both the reports’ indices of business confidence have decreased this month, they remain above the 100 mark. This indicates that, over the next six months, the UK’s business people still expect economic growth to continue above its long term 2.5 per cent – 2.75 per cent trend rate.

Business confidence dented but not shattered

Despite its resilience, there are signs that UK business is feeling the pressure. The BDO Output Index, which predicts business confidence one quarter ahead, fell from 100.8 in October to 100.4 in November, the lowest level for eighteen months. Similarly, the BDO Optimism Index, which measures business confidence two quarters ahead, has hit a two year low, falling from 100.9 in Oct to 100.5 in Nov - full article