Team Blitz India
BRITISH businesses are more optimistic this year about their profits and broader economic growth than they were last year. This is stated in an annual survey done by Boston Consulting Group (BCG). The findings, based on a poll of 1,500 businesses between January 4 and January 15, show a similar pattern to closely watched purchasing managers’ index figures, which recorded the fastest growth in eight months in January.
Britain’s economy entered a shallow recession in the second half of 2023, but Bank of England Governor Andrew Bailey has said he has been encouraged by signs of a modest pickup, bolstered by lower inflation and expectations of interest rate cuts.
BCG has noticed signs of emerging optimism amongst business leaders in the UK. Business leaders largely expect to maintain or grow their headcount and over half plan to raise prices by more than 6 per cent this year.
The survey showed that 47 per cent of business leaders think economic growth will be better by the end of the year, compared with 37 per cent last year.
Four in five businesses were confident about their prospects over the next year compared with three-quarters of businesses last year. Half expect profits to rise over the next 12 months. Businesses’ biggest worry was high energy prices, concerning 41 per cent of firms, followed by the slowing economy, named by 36 per cent as their top concern.
Ahead of a national election expected later this year, 41per cent said energy policy should be one of politicians’ top three priorities, followed by 33 per cent who wanted changes to business taxation and 21per cent who listed employment taxes.
