Hiring intentions at two year low but business confidence rebounds – BDO

THE latest business survey from accountancy firm BDO has presented a mixed picture of the state of the economy.

BDO’s Employment Index, which measures businesses’ hiring intentions over the next two quarters, fell to a 28-month low of 90.7 in September, according to the firm’s latest Business Trends report.

However, business optimism showed a rebound this month, continuing the zigzag pattern of ups and downs in confidence of the last four years. This reflects British businesses’ uncertain approach, with confidence ebbing and flowing as they grapple with a flat economy. 

Falling business employment intentions indicate that the overall outlook for the economy continues to be challenging. 

However, although conditions for job seekers are unlikely to improve before the end of the year, the labour market has been a bright spot in the gloom and this month’s BDO figures suggest no more than a mild downturn in hiring intentions.

Mark Anslow, partner and head of BDO in Birmingham, said: “With tough business conditions becoming further ingrained, there is of course no quick fix to the economy’s ails.

“However, despite the current slight downturn, we welcome the continued surprising strength of the UK labour market. 

“We would encourage the Government to take advantage of this week’s Conservative Party Conference to champion an innovative and flexible approach to strengthening the labour market, a key driver for economic recovery.”