UK business confidence has just reached its highest point since May 2012, showing that businesses are optimistic about their chances in the coming year. This also shows that business conditions are improving during 2013 and will hopefully continue on in the same direction. According to the latest Business Trends report by BDO LLP things are looking cheerful for the rest of 2013.
BDO’s Optimisim Index predicts business performance two quarters ahead has improved for the fourth consecutive month. The Output Index, which predicts short-run turnover expectations, also improved in May to an 11-month high. This was particularly true for manufacturers which improved substantially.
This improving confidence is feeding businesses’ hiring intentions – UK businesses are planning on hiring above the crucial rate needed for employment growth, at the highest level since August 2011. This indicates that the private sector will help to offset the ongoing public sector jobs cuts.
“It’s encouraging to see that UK business confidence has continued its upward trend, and that businesses have retained their healthy hiring intentions for a fifth consecutive month,” said Peter Hemington, Partner at BDO LLP. “However, the Government must do more to achieve the robust economic growth that remains tantalisingly out of reach. The Government must look to ensure more funds are reaching British businesses through lending, in order to help them drive the UK’s economic recovery.”
This need for funding can be filled by businesses making more use of the alternative finance options out there. Options such as invoice finance are growing and becoming more and more important to businesses of all sizes – and should be options that companies consider when looking for finance to grow their business.