Partner Article

Sun comes out for businesses amid "cautious optimism"

Businesses have a reason to be “cautiously optimistic” according to the latest Business Trends Report released by business advisory firm, BDO, on Monday.

The report shows that companies surveyed were slightly more confident last month, as the indices for output and optimism rose for the second month in a row.

BDO found that, despite positive trends, manufacturers are not confident about growth prospects, while weakness in the Eurozone still poses a threat to global growth.

The manufacturing sector’s Optimism Index dropped to 89.2 in October, after predictions gave an uncertain outlook for the rest of the year and early 2013.

BDO’s Optimism Index rose by 0.7 to 93.2 in October, while the Output Index increased to 92.1 from 91.2 in September to give the strongest figures reported since July this year.

Although sentiment is generally rising, BDO warned that threats to the economic climate remain, and the outlook is still fragile.

Eurozone “flare ups” are still a possibility, and potential challenges have suppressed a surge in optimism from the UK’s businesses.

Peter Hemington, Partner, BDO LLP, commented: “Business confidence is steadily improvingso there is cause for cautious optimism.

“However, UK manufacturers in particular are fearful for the future. To help, we hope the Chancellor’s Autumn Statement will set out concrete plans for a UK Business Bank to add to the government’s other growth initiatives.”

This was posted in Bdaily's Members' News section by Miranda Dobson .