Partner Article

UK short term business prospects improve

Short term business prospects in the UK have improved, as trading levels hit a 12 month high.

However, research from business services firm BDO LLP has also indicated that the eurozone crisis could still damage longer term progwn.

The BDO Output Index rose to 96.7 in May from 95.8 in April. Any figure above 95 indicates growth.

BDO now believe that these figures indicate that the UK is returning to growth, but despite this their Optimism Index has dropped for the third month in a row, from a peak of 98 in February to 95.5 in May.

Commenting on the worsening situation in Europe, Peter Hemington, a partner at BDO LLP said: “Given that half the UK’s export goods go to the eurozone, it’s hardly surprising that the ongoing turbulence there is denting longer-term growth prospects here.

The report has also indicated that the Government should consider boosting growth by spending more on infrastructure by making the most of low costs associated with Government borrowing.

He added: “It’s clear that UK business people are worried by the eurozone crisis and are scaling back plans for hiring and investing.

“This massively threatens the already fragile growth prospects for the economy.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .