Business confidence in the UK remains subdued, with pessimism among small enterprises slightly eased.
- The latest survey by the Confederation of British Industry shows that UK companies remain pessimistic about the economic outlook for the coming months. However, another survey by the Institute of Directors indicates that negative sentiment among small businesses has eased to some extent.
- Alpesh Paleja, Deputy Chief Economist of the Confederation of British Industry, said that weak consumer spending and customers’ caution towards large expenditures continue to impact business operations. Meanwhile, the ongoing escalation of tensions in the Middle East adds further pressure on companies, with more businesses staying highly alert to the risk of continued cost increases.
- In terms of specific data, the Confederation of British Industry’s index measuring companies’ expectations for output in the next three months edged up in May to -24 from April’s -25, but it still remains far below the 15-month high of -13 recorded in February, before the outbreak of conflict in Iran.
- The actual output index for the three months through May fell further to -31 from April’s -24, only slightly above the four-month low of -35 hit in March. While companies’ sales price expectations remain high, they have retreated somewhat from the three-year peak touched in April.
- The Institute of Directors’ Economic Confidence Index for May rebounded to -53 from April’s -64. It is noteworthy that this index fell in March this year to its lowest point since statistics began in 2016.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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