Two surveys say business confidence plumbing depths on Brexit crisis
Two surveys of UK business leaders published today show plunging confidence as the country’s political crisis drags on.
Accountancy firm BDO found business leaders in the UK were the least confident of any major European country, with two thirds of respondents believing the economic climate will deteriorate over the next six months and only 10 per cent believing it will improve.
Almost a fifth (17 per cent) of executives in the UK expect a decline in the financial performance of their own business over the next six months.
Read more: Business confidence declines in London but firms look to hire
Stuart Lisle, tax partner at BDO, said:“With a quarter of business leaders concerned that their business may not survive another economic crisis, the government must not overlook the importance of supporting and encouraging business in their future policy-making, whatever the outcome of Brexit.
Separately, a survey by the Recruitment & Employment Confederation (REC) released today found business confidence had dropped to its lowest level since mid-2016.
REC’s latest jobs outlook report found businesses have ambitious plans for recruitment. In the short term, employers’ intentions to hire permanent staff rose to a new figure of +24, while hiring intentions for temporary workers stayed strong at +10.
Read more: Consumer confidence edges up in September
However, feedback from the REC’s survey of recruiters showed that many businesses are scaling back or even cancelling their hiring plans due to their lack of confidence and the ongoing uncertainty around Brexit.
Neil Carberry, chief executive of the REC, said: “These figures show the damage that political indecision is causing to business confidence. Companies are ready to hire, invest and grow – but the lack of a clear path ahead means that more and more are thinking twice. Whether it is Brexit or the spill over from Trump’s trade war, politicians need to prioritise jobs and growth over ideology.”