UK business prospects hit 26-month high

Short term prospects for UK businesses are increasingly positive, according to the respected BDO Business Trends report, hitting a 26-month high in the process. The accountancy firm’s Output Index, which forecasts turnover expectations for businesses in the short term, has now seen five consecutive months above the mark that indicates growth. Stand-out figures for output were in the services sector, which has risen to 96.5 in July, and manufacturing, which jumped up to 98.3. Anything above 95.0 indicates growth. Business confidence also rose for the sixth month in a row in line with employment intentions, whilst BDO’s Inflation Index also suggested that inflationary pressures were likely to ease in the upcoming months, therefore giving businesses more breathing space. The Inflation Index seemed to match official figures released by the Office of National Statistics (ONS), after it was revealed that both CPI and RPI inflation fell in July, down from 2.9% and 3.3% to 2.8% and 3.1% respectively.