Business Confidence and UK Economic Growth

Peter Hemington: But confidence among businesses fell for the fifth straight month, according to BDO, which produces its optimism index by combining findings from Bank of England regional agents, CBI surveys and the Markit/CIPS purchasing managers reports . While the expected continued economic growth is encouraging, falling business confidence suggests the UK economy is approaching a turning point, said BDO partner Peter Hemington, according to The Guardian. The UK cannot rely on consumer spending and services in the long-term. UK economic growth is expected to hold up during the second half of this year but a sharp drop in business confidence in recent weeks suggests the momentum is under threat, according to a round-up of indicators from accountants BDO. Related:UK manufacturing hit by turmoil in China Its latest output index for the UK edged up this month, with the main impetus for growth coming from strong consumer spending thanks to rising wages and near-zero inflation. Policymakers must focus on steps to rebalance the economy and give support to manufacturers and greater wealth creation in the north and Midlands. Their mood echoes official figures last week showing sharp falls in exports and manufacturing output and a gloomy outlook from the manufacturers’ organisation EEF, which bemoaned a hit to business from China slowdown. Manufacturers were particularly downbeat, recording their lowest level of confidence since November 2012, BDO said. (news.financializer.com). As reported in the news.