BDO positive on economic prospects

by Richard Crump

More from this author

10 Dec 2013

  • Comments
bdo-baker-st

BUSINESS CONFIDENCE has increased for the tenth consecutive month amid signs the economic recovery will gather pace in the first half of 2014, according to research from BDO.

BDO's Optimism Index, which predicts business performance two quarters ahead, increased from 101.7 in October to a 43-month high of 103.1 in November, taking it above the 100.0 mark that indicates the UK economy's long-run average growth rate.

Optimism in the services sector, which accounts for just over three-quarters of the UK economy, rose to 100.4 in November, up from 99.9 the previous month. Optimism among manufacturers, driven by rapid growth in new business orders, rose from 109.6 in October to 115.3 this month - the sub-index's second highest reading in Business Trends' 21-year history.

Peter Hemington, partner, BDO, commented: "This is a strong and broad-based recovery. I think we can finally say that the key economic battleground has shifted from austerity to the new debate about how the UK government can help UK businesses achieve sustained growth in the context of a dynamic, internationally competitive economy.

"The UK clearly has some substantial long-term problems in terms of an underperforming education system and a dysfunctional planning regime. Only time will tell whether the coalition government's radical plans for educational reform will work, but at least there is plenty of energy behind implementing these. Planning seems to have been filed in the "too difficult" box by successive governments, so real change is unlikely anytime soon."

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.