The Institute of Chartered Accountants in England and Wales have launched the results of the Nation ICAEW Business Confidence Monitor Q2, giving the national, regional analysis and sector analysis. You can view the full reports on their website.
However, below are the key highlights -
- Business sentiment rose again for the third successive quarter and is now at its highest level for two years, likely driven by weaker input cost inflation feeding through into stronger profits growth and positive domestic and export sales projections.
- Despite expectations of strong sales growth, concerns about customer demand are widespread and late payments are a growing issue in some sectors. Regulatory worries are highest overall and, although they are concentrated in Banking, Finance & Insurance and Energy, Water & Mining, they have risen in other sectors (Property and Retail & Wholesales).
- Companies plan to grow their capital investment at around the historical average, despite expected uplift in sales and profits growth.
- Businesses in the Retail & Wholesale, Manufacturing & Engineering and Property sectors are not sharing the improvement in confidence.
- In a separate survey, almost half of businesses said their costs had risen because of the increase in the National Living Wage. Almost one in five firms put up prices to cover the increase, while respondents also improved efficiencies, closed pay gaps and increased upskilling of staff in response.
- In a separate survey, almost half of businesses said their costs had risen because of the increase in the National Living Wage, companies within the Retail & Wholesale sector were particularly impacted. When asked what action they had taken or intend to take to tackle the increase, around a fifth of businesses have already improved efficiencies, including using automation and investing in technology. A similar proportion have closed the pay gap between levels or roles or increased their prices. Looking ahead, businesses plan to address increased costs through improving efficiencies, upskilling their staff, and diversifying their revenue streams.
On Friday 2nd August at 8.30am they will be holding an online discussion and overview of the results for the South West Region, led by ICAEW Head of Business, Simon Gray and Ed Tellwright from the British Business Bank – to join please register on ICAEW South West: UK economic outlook with an outline of the BCM results | 2 August 2024