26 May 2022
The Institute of Chartered Accountants in England and Wales (ICAEW) have launched their Business Confidence Monitor results. The latest results show business confidence weakening again. As economic conditions tighten, businesses are facing significant challenges which could hinder future growth.
BCM Q2 key findings
- The Business Confidence Index continues to fall from its near-record level of Q4 2021. It is now broadly within the pre-Covid range as concerns grow around the economic outlook.
- Companies have experienced strong sales as demand picked up after the lifting of Covid restrictions, with domestic sales leading exports, but the latter starting to catch up.
- Businesses are well aware of challenges and risks that could alter their current outlook, with particular concerns over staff turnover and skills availability, alongside transport problems and rising issues with respect to taxes and government support.
- In addition, continued input price inflation and salary costs rises are adding further pressure on businesses and are expected to continue doing so. Many have already increased their prices and they anticipate further rise ahead.
- Confidence varies markedly by sector. It is highest in IT & Communications and Transport & Storage, and weakest in Construction, Manufacturing, and Energy.
- Confidence has eased across most of the UK, with Scotland and Northern England among the least confident.
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