Confidence on the up says BDO

BUSINESS confidence and output picked up last month, according to a report by accountants BDO.

Despite the more positive news in the firm’s Business Trends Report, the recovery in the economy is described as “fragile” and  manufacturers in particular are fairly down-beat on short term  growth prospects.

Aside from this, BDO said its Output and Optimism indicators had shown increases for a second consecutive month in October.

Its Optimism Index, which predicts business performance two quarters ahead, rose to 93.2 in October from 92.5 in September and follows a record low of 89.1 seen in August. The BDO’s Output Index, which predicts short-run turnover expectations, increased to 92.1 in October from 91.2 in September.

Importantly, both the optimism and output indices remain below the 95.0 mark that would indicate a return to growth.

Jeff Jones, partner and head of BDO in the North West said: “Business confidence is steadily improving so there is cause for cautious optimism.

“However, manufacturers in particular are fearful for the future. To help, we hope the Chancellor’s autumn statement will set out concrete plans for a UK Business Bank to add to the government’s other growth initiatives.”