UK FIRMS expect to grow strongly in early 2015 despite confidence being dented by stagnation in Europe.
The BDO output index, which tracks UK firms’ order books, held steady at 103.2 per cent in November, according to figures released today by accountants BDO.
The 100 figure marks long term growth. However, the sub-index for manufacturing fell to 109.1 in November from October’s 110.1 as weak Eurozone growth undermined export orders. This was cancelled out by stronger growth in the service sector.
The BDO optimism index – which tracks near term expectations of orders – edged down to 103.9 in November from 104.6 the month before. The Eurozone’s economic stagnation was the main driver of falling confidence but confidence was partially supported by low inflationary pressure on business, BDO says. BDO’s inflation index which follows firms’ cost expectations over the next three months fell for the seventh consecutive time to 95.8 in November due to lower oil prices.