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Business confidence dramatically recovered in August, after plummeting in the aftermath of the Brexit vote

Mark Sands
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Businesses are getting back into a positive mood, YouGov says. (Source: Getty)

Business confidence dramatically recovered in August according to new polling figures, but concerns remain on the broader direction of the economy.

Just one day after the government was boosted by reports of a huge return in manufacturing, new YouGov figures also show confidence returning.

According to the pollster's figures, while business confidence remains below levels recorded in advance of the referendum, the gap has markedly reduced, despite fears for the economy more broadly.

In research conducted with the Centre for Economics & Business Research, YouGov found its business confidence index surged back to 109.7 in August, meaning it has made up more than half of the loss endured in the aftermath of the Brexit vote.

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The increase in optimism is attributed largely to improved forecasts driven by revenues from domestic sales and exports.

Before the vote, 53 per cent of businesses said they were optimistic about their own prospects in the next 12 months.

This figure had dipped to 46 per cent in July, before recovering to 48 per cent.

And less than one in four businesses say they are pessimistic.

Head of YouGov reports, Stephen Harmston, said: “For the most part, the panic we saw straight after June 23 has been replaced by calm.

“In the short term at least, a more positive outlook from businesses and consumers will help grease the wheels of the economy – spurring spending and investment.”

Read More: One more measure of consumer confidence has come roaring back

However, the firm also noted that, while businesses may be optimistic on their own prospects, concern on the broader economy remains.

In June, one in four businesses told YouGov they were pessimistic about the 12 months ahead for the economy.

This also climbed to 49 per cent in January, but the return of optimism shown elsewhere in the latest figures is not reflected to the same extent.

Forty-five per cent said they remain pessimistic about the UK economy over the coming year.

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