Confidence in UK business growth is continuing its upward trend this month, reaching its highest point since May.
The latest Business Trends report by accountants and business advisers BDO shows positivity has reached a 13-month high, moving from 93.6 to 94.3. In particular, the services sector is faring well and moved to 95.5 on the Optimism Index – above the crucial 95.0 mark that indicates growth.
On top of this, BDO’s Output Index – which predicts short term turnover expectations – increased for the fourth consecutive month from 94.4 in May to 94.9 in June. This means this index is just 0.1 away from the critical 95.0 mark, while it also enjoys its highest level for 13 months.
However, it’s not time to celebrate just yet – BDO has warned that things could easily change.
Peter Hemington, a partner at BDO, commented: “While it’s encouraging to see confidence continuing to improve, we should be mindful of the zig-zag trend that has characterised UK business confidence since 2008. Periods of improved confidence have ended before growth has really begun to get going.”
Posted by the Secret Businessman