Confidence rose ahead of triggering of Article 50

Prime Minister Theresa May in the cabinet signs the Article 50 letter, as she prepares to trigger the start of the UK's formal withdrawal from the EU.

The quarterly survey of global CFOs and finance professionals, conducted by ACCA (the Association of Chartered Certified Accountants) and IMA (the Institute of Management Accountants) showed that business were anticipating favourable conditions for the short-term future.

The performance is consistent with a global uplift in confidence, with an optimistic mood in the US combining with a stable outlook in China, India and the Eurozone.

Faye Chua, head of business insights at ACCA, said: “Confidence levels in the UK since the referendum in June have surprised many observers, with consumer spending proving robust and the fall in sterling providing a boost to exporters.

An EU flag flies in front of the Houses of Parliament in Westminster, London Photo: Victoria Jones/PA Wire

“Even with the expectation that Article 50 would be triggered by the end of the quarter, businesses are still clearly expecting favourable economic conditions in the short term.

“Yet while this means the UK enters the Brexit negotiations in better shape than anticipated, this only marks the beginning of a long and uncertain process.”

The view is being mirrored in Yorkshire, with Chris Hearld, KPMG’s North Region Chair, telling The Yorkshire Post: “It will be no surprise to those who work regularly in this region, to read that the business leaders I have spoken with recently are keeping calm and carrying on in the pursuit of their company ambitions with fortitude, undeterred by the prospect of Brexit.

“Confidence appears to remain solid in this part of the world rather than particularly high, given that for every business benefitting from the exporting advantage of Sterling’s drop, there is another facing tough decisions about their response to the resulting rise in the prices of imports.

Chris Hearld, Office Senior Partner at KPMG in Leeds.

“We are working with a good number of exporting businesses where their current competitive pricing position in an international context is being enthusiastically leveraged to achieve footholds in new markets globally.

“However, the KPMG retail sales monitor out this week showed a weakening in demand on the high street, and with data showing inflation is outstripping wage growth, the risk posed by the prospect of a drop in consumer confidence is a big talking point.”