Business confidence steadies on Brexit delay decision
Business confidence has stayed steady for the first time in 12 months as the prospect of an imminent UK exit from the EU recedes.
According to an index from the Institute of Chartered Accountants in England and Wales (ICAEW), business confidence stood at -16.6 per cent in the second quarter, similar to 16.4 per cent in the previous quarter.
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This marks the first time in the last 12 months that the index has not seen a significant quarter-on-quarter fall.
Other key findings include sales growth of 3.9 per cent, with no significant improvement expected in the next 12 months.
Employment is growing at 1.9 per cent, but the rate of expansion is expected to slip to 1.5 per cent in the next 12 months, with skills shortages expected in sectors such as construction.
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Transport and storage (-26.7 per cent) and property (-26.1 per cent) are the least confident sectors.
The ICAEW said the survey shows that underlying growth in the second quarter may be just 0.2 per cent, having stood at 0.5 per cent in the first quarter as businesses stockpiled goods in preparation for a March Brexit.
Michael Izza, ICAEW chief executive, said: “Many have stockpiled ahead of the expected March exit from the European Union, but this did not happen. Stockpiling is expensive for businesses, but it did boost GDP growth.
"However, my fear is that this will have an impact on growth and GDP figures in the rest of the year, so we should not be surprised to see even lower growth than normal while companies use up the excess stock they now have.”