05 Feb 2020: Unleashing business confidence…
After months of delay and negotiation, we have finally left the EU. Brexit-induced uncertainty has unquestionably taken its toll, but now that the dust is beginning to settle, are economic forecasts being too pessimistic?
According to most economists, EU membership has a positive impact on UK productivity and consumer confidence. So, the prospect of leaving the EU (with or without a deal) has caused many businesses over the last 12 months to err on the side of caution – freezing spending and delaying major projects.
Six weeks on from the election and it feels like the mist is clearing. The first Lloyds Bank Commercial Banking Business Barometer of 2020 indicates that overall business confidence surged in January. The first survey taken since the General Election shows a 13-point increase in business confidence, a 14-month high and on par with the long term average of 25%.
Our business is already feeling the impact of this with enquiry levels rising and orders being placed across a diverse range of sectors, from manufacturing to retail.
There is no doubt that the UK is in need of certainty and progress. Could the post-election result be causing the market to rebound or perhaps businesses can’t afford to procrastinate any longer, with a ‘wait and see’ approach?
Either way, it would seem that the UK moving forward with Brexit is breaking the deadlock and providing businesses with a positive start to 2020.
David Carroll, MD at Conveyor Networks and imio Software Solutions