Monday 5 February 2018 12:01am

Business confidence improves as global economic outlook reaches best for two years

The January Blue Supermoon Is Visible In The UK

The outlook has improved but some fear the UK will lag behind a global growth boom (Source: Getty)

British businesses are feeling slightly more confident, while economists are predicting an improved outlook for the UK’s economy, new reports released today show.

But businesses are still uneasy over challenges posed by Brexit, which some fear could hold the UK back compared to its global competitors.

Confidence among businesses improved at the beginning of 2018, though it still remained in negative territory according to the Institute of Chartered Accountants in England and Wales.

London was the region with the weakest business confidence, marking a striking gap between the capital and the rest of the country which is now bigger than it was during the financial crisis.

Read more: Firms "hugely frustrated" by government delay on Brexit immigration paper

The ICAEW put this down to the banking and finance in particular, as 82 per cent of companies in the sector experienced rising difficulties with regulatory requirements, compared to 48 per cent overall.

This comes as the latest forecasts from EY ITEM Club suggest that the British economy is over the worst but faces difficulty accelerating.

Following better than expected GDP growth of 1.8 per cent in 2017, economists nudged up forecasts for 2018 to 1.7 per cent.

But there are still fears that the productivity puzzle and ongoing Brexit uncertainties could continue to cause the UK to lag behind its peers. Last year the Eurozone’s GDP grew 2.5 per cent while the US was up three per cent.

“It’s not time to crack open the champagne just yet,”commented EY ITEM Club’s chief economic adviser Howard Archer.

“Brexit uncertainties remain significant while the squeeze on consumers remains appreciable at the start of 2018. If a Brexit transition arrangement can be agreed early on in 2018, this would likely provide a boost to investment prospects over the year.”

Read more: Editor's Notes: The City has its Brexit optimists - are they complacent?

Results from the reports contrasted with the global economic outlook, with business optimism now at its strongest for two years according to Oxford Economics.

As fears over China’s slowdown and tensions on the North Korean peninsula have receded, businesses around the world are increasingly positive compared with three months ago.

Concerns that major economies could become stuck in a pattern of low or no growth have also fallen to the lowest levels in 18 months.

Read more: UK citizens' and firms' confidence bounces back at the start of the year

Monday 5 February 2018 12:01am

Business confidence improves as global economic outlook reaches best for two years

Monday 5 February 2018 12:01am

Business confidence improves as global economic outlook reaches best for two years

The January Blue Supermoon Is Visible In The UK

The outlook has improved but some fear the UK will lag behind a global growth boom (Source: Getty)

British businesses are feeling slightly more confident, while economists are predicting an improved outlook for the UK’s economy, new reports released today show.

But businesses are still uneasy over challenges posed by Brexit, which some fear could hold the UK back compared to its global competitors.

Confidence among businesses improved at the beginning of 2018, though it still remained in negative territory according to the Institute of Chartered Accountants in England and Wales.

London was the region with the weakest business confidence, marking a striking gap between the capital and the rest of the country which is now bigger than it was during the financial crisis.

Read more: Firms "hugely frustrated" by government delay on Brexit immigration paper

The ICAEW put this down to the banking and finance in particular, as 82 per cent of companies in the sector experienced rising difficulties with regulatory requirements, compared to 48 per cent overall.

This comes as the latest forecasts from EY ITEM Club suggest that the British economy is over the worst but faces difficulty accelerating.

Following better than expected GDP growth of 1.8 per cent in 2017, economists nudged up forecasts for 2018 to 1.7 per cent.

But there are still fears that the productivity puzzle and ongoing Brexit uncertainties could continue to cause the UK to lag behind its peers. Last year the Eurozone’s GDP grew 2.5 per cent while the US was up three per cent.

“It’s not time to crack open the champagne just yet,”commented EY ITEM Club’s chief economic adviser Howard Archer.

“Brexit uncertainties remain significant while the squeeze on consumers remains appreciable at the start of 2018. If a Brexit transition arrangement can be agreed early on in 2018, this would likely provide a boost to investment prospects over the year.”

Read more: Editor's Notes: The City has its Brexit optimists - are they complacent?

Results from the reports contrasted with the global economic outlook, with business optimism now at its strongest for two years according to Oxford Economics.

As fears over China’s slowdown and tensions on the North Korean peninsula have receded, businesses around the world are increasingly positive compared with three months ago.

Concerns that major economies could become stuck in a pattern of low or no growth have also fallen to the lowest levels in 18 months.

Read more: UK citizens' and firms' confidence bounces back at the start of the year

British businesses are feeling slightly more confident, while economists are predicting an improved outlook for the UK’s economy, new reports released today show.

But businesses are still uneasy over challenges posed by Brexit, which some fear could hold the UK back compared to its global competitors.

Confidence among businesses improved at the beginning of 2018, though it still remained in negative territory according to the Institute of Chartered Accountants in England and Wales.

London was the region with the weakest business confidence, marking a striking gap between the capital and the rest of the country which is now bigger than it was during the financial crisis.

Read more: Firms "hugely frustrated" by government delay on Brexit immigration paper

The ICAEW put this down to the banking and finance in particular, as 82 per cent of companies in the sector experienced rising difficulties with regulatory requirements, compared to 48 per cent overall.

This comes as the latest forecasts from EY ITEM Club suggest that the British economy is over the worst but faces difficulty accelerating.

Following better than expected GDP growth of 1.8 per cent in 2017, economists nudged up forecasts for 2018 to 1.7 per cent.

But there are still fears that the productivity puzzle and ongoing Brexit uncertainties could continue to cause the UK to lag behind its peers. Last year the Eurozone’s GDP grew 2.5 per cent while the US was up three per cent.

“It’s not time to crack open the champagne just yet,”commented EY ITEM Club’s chief economic adviser Howard Archer.

“Brexit uncertainties remain significant while the squeeze on consumers remains appreciable at the start of 2018. If a Brexit transition arrangement can be agreed early on in 2018, this would likely provide a boost to investment prospects over the year.”

Read more: Editor's Notes: The City has its Brexit optimists - are they complacent?

Results from the reports contrasted with the global economic outlook, with business optimism now at its strongest for two years according to Oxford Economics.

As fears over China’s slowdown and tensions on the North Korean peninsula have receded, businesses around the world are increasingly positive compared with three months ago.

Concerns that major economies could become stuck in a pattern of low or no growth have also fallen to the lowest levels in 18 months.

Read more: UK citizens' and firms' confidence bounces back at the start of the year