YORKSHIRE businesses are on track to enjoy continued growth in the first half of 2015, despite the eurozone’s deteriorating economic prospects, according to the latest Business Trends report by accountants and business advisers BDO.
The BDO Output Index, which tracks UK businesses’ order books, held steady at 103.2 in November. This suggests that GDP growth over the next three months should be comfortably above the long term trend of 2.25 per cent, according to BDO.
The output sub-Index for the manufacturing sector fell to 109.1, as weak eurozone growth continued to undermine export orders. However, this was cancelled out by a 0.3 point rise in the services sector sub-index, which accounts for three quarters of UK economic output. Overall, this should put companies in a strong position for continued robust growth next year, according to BDO’s research.
Terry Jones, the head of BDO in Yorkshire, said: “Despite the gloomy and deteriorating eurozone economy, businesses are successfully weathering the storm and are on course to enter 2015 on the front foot, sustained by solid and continued growth. However, delve a little deeper and one developing trend poses a cause for concern.
“Despite UK employment levels being on the up, income tax receipts for the year have been lower than expected.
“This suggests that the quality of jobs being created is low, while much is being made of job creation as evidence of economic policy success.”