Business confidence in ‘recession’ in East Midlands
Business confidence in the East Midlands has slipped into negative territory, according to an influential monthly survey.
EU Referendum uncertainty and weaknesses in the global economy are undermining business confidence in the East Midlands – that’s the message from the latest ICAEW/Grant Thornton Business Confidence Monitor (BCM).
A Confidence Index score of -0.3 was recorded in the East Midlands, a sharp decline from +12.6 at the same point 12 months ago.
Meanwhile, at 3.9% year on year, domestic sales growth is back where it was in Q2 2015.
Tom Madden, ICAEW regional director for the East Midlands said: “Despite a shift into negative confidence this quarter, key financial performance indicators in the East Midlands are modestly encouraging. Export growth is holding up, and there is a favourable upward trend profit growth.
“It is likely that wider uncertainties such as the EU Referendum, have initiated reservations among businesses in the region about future export opportunities and the domestic supply chain.
“Business confidence remains fragile and the next quarter could be decisive in terms of a return to a trend for growth and the economy going forward.”
