Concerns for manufacturers highlighted
As the prospects of the UK services and manufacturing industries continue to diverge, the Government’s plans to rebalance the economy are increasingly at risk, according to the latest Business Trends Report by accountants and business advisers BDO LLP in Yorkshire.
BDO’s optimism index – which predicts growth six months ahead – remains above its long- term trend at 101.9, indicating that UK businesses expect their order books to continue to grow strongly. However, this is driven by the buoyant services sector, masking serious concerns among manufacturers, BDO said.
Manufacturers’ optimism is deep in negative territory at 90.2, showing that manufacturers are gloomy about the future. In contrast, the services sector is expecting rapid growth, with optimism scores well above the trend at 104.2.
Short-term economic prospects – as predicted by BDO’s Output Index – are more positive, with all sectors expecting strong growth and output over the next three months.