The latest ICAEW UK Confidence Monitor* (BCM) suggests that UK businesses are feeling more confident, with an increase from -8.7 in the first quarter to 6.7 in the second quarter. They are however still reluctant to make long-term commitments in a number of areas.
Running for over 13 years, the BCM has built up an extensive dataset on business confidence, financial performance and the challenges to business performance of the credit crunch, recession and recovery.
Key findings this quarter show that despite uncertainty surrounding Brexit, business confidence has moved into positive territory for the first time since the EU referendum in the second quarter of 2016, even though it is still weak.
Export growth is predicted to strengthen, together with domestic sales – despite an expected squeeze on the consumer. And input price inflation has accelerated, with firms looking to pass some of this onto customers, while controlling other business costs.
Findings also indicate that businesses are not intending to raise the pace of employment and wage growth, or spending on staff development.
Firms are however gradually revising up their plans for capital expenditure despite widespread spare capacity, though growth in research and development (R&D) will be more modest.
Specialist advisers to UK businesses
At Beavis Morgan, we have extensive experience of providing specialist advice and planning to small and medium sized (SME) businesses and we are on hand to assist you to remain profitable and increase your net worth.
Our R&D tax credits team has also made a significant number of successful claims on behalf of clients who have invested in innovation.