Saturday, January 16, 2021

Business confidence revitalised after Brexit gloom

YouGov have released data which finds business confidence has risen 4.7 points this month after the post-Brexit referendum slump.

The news follows studies suggesting consumer confidence has also significantly risen this month due to strong sales and tourism.

According to the research by YouGov and the Centre for Economics and Business Research (Cebr), confidence has gained back almost half of what was lost after the referendum result. 

August topped 109.7 on the index after dropping 7.6 points to 105 in the previous month.

RELATED: Consumer confidence restored as summer sales quash post-Brexit fears

This is attributed to an increase in the predicted capital investment and revenue from domestic sales and exports over the next 12 months.

Despite confidence being on the rise, almost half of the businesses surveyed said they were still concerned about future prospects of the UK‘s economy.

Following Brexit this figure almost doubled, growing to 49 per cent from July‘s 25 per cent.

“The dust is settling on the EU vote and businesses are showing signs of resilience, for now at least,” Cebr director Scott Corfe said.

“However, one red flag in these figures is the level of pessimism about the UK economy that the Brexit vote has engendered in British businesses. 

“If these concerns materialise into reality, businesses could rapidly rein in their investment and hiring plans.”

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