There is growing unease among British businesses and confidence has hit the lowest level in over 20 years. The accountancy firm BDO has just published a survey giving a pessimistic view on the state of the UK economy, which will struggle for any growth in the first quarter of the year. The zero expansion is regardless of continuing signs of life in the labour market, which has a number of companies committed to taking on more staff.
The BDO review is a measure of optimism in the economy and business performance over a half-year period. The index fell to 88.9 in January, which is a long way below the score of 95 that would indicate escalation.
The survey, which was launched in 1992, gives a clear indication that the lack of confidence by the business community has plumbed a new depth of gloom. Peter Hemington, who is a partner at BDO, stated that companies were now used to the absence of any sustained growth in the British economy and that the ups and downs of the last five years have led to an acceptance of the ‘new normal’ of stagnation.
It is thought that the only way to end the cycle should involve government plans to encourage development. To continue with weak economic growth has fuelled fears of a triple-dip recession, which would extend the overall recession period that began in 2008.The BDO’s employment index for January 2013 has increased, which indicates that there will be an improvement in job opportunities over the next six months. Aerospace firm BAE systems has announced its intention to create 400 openings for apprentices.