Optimism among UK businesses has fallen to a 20-year low

Business Trends report: BDO LLP

  • BDO’s Optimism Index, which predicts business performance two quarters ahead, suggests the economy will continue to contract at the start of 2013.  The index fell to 89.1 in August from 93.1 in July.  This is the sixth consecutive month that the data has registered a drop, with a four-point plunge from 93.1 in July.  Business confidence is now at its lowest level since the Business Trends indices began in 1992, and significantly below the crucial 95 mark which would indicate a return to growth.
  • BDO’s Output Index – which predicts short-run turnover expectations – has also fallen sharply, from to 90.8 in August from 93.9 in July, reaching its lowest point for 40 months.
  • BDO’s Employment Index fell to 92.1 in August
  • Conditions for UK job seekers are unlikely to improve before the end of the year
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