Optimism on utility has declined to its lowest level since March 2021 as firms weigh the prospect of continued inflationary pressures and disruptions in the supply chain in the coming months.
Accounting firm BDORussia’s optimism index fell 4.82 points to 101.93 for the second month in a row, while the service optimism index fell 5.35 points to 100.95.
This comes after figures released by the Office for National Statistics show that the UK economy contracted more than expected by 0.3% in April.
More than a quarter of medium-sized businesses said they had to put up prices increased as a result of inflation, according to a survey of accounting firm 500 company executives BDOand 19% said they had suspended all investment in the business.
Almost a fifth (18%) reported growth inflation and the cost of living crisis will have a worse impact than Covid.
BDO partner Kaylee Crossweight said: “The fact that business optimism is now at the same level as it was more than a year ago when the country was still experiencing restrictions on coronavirus paints a worrying picture for the UK economy.
“Weakened consumer capacity is undoubtedly a major factor in business and will continue to curb growth in the coming months.”
Business optimism is sinking to its lowest level in more than a year
Source link Business optimism is sinking to its lowest level in more than a year