Contractors will be interested to learn that business prospects for the year ahead were the strongest since January and above the long-term average.
Findings from Lloyds Bank revealed that a net balance of 39% of firms in May, up from 31% last month, anticipated stronger prospects. In all, 50% (up from 44%) foresee a rise in their activity, while 11% (down from 13%) expected a fall.
UK businesses are also experiencing a more positive outlook for hiring. For example, the net balance of firms expecting to increase their staff levels in the coming year increased by 5 points to 30%, which was also a four-month high. Forty-six per cent (up from 41%) anticipated a rise in their headcount, while 16% (unchanged) expected a reduction.
The net balance of the expected impact of Brexit on business activity was only slightly positive, but it was still at the highest level this year. Thirty-five per cent (up from 31%) of firms anticipated a positive impact, while 28% (up from 27%) expected a negative impact.
Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking commented on the findings, “Business confidence is rising and firms appear to be brushing off the economic slowdown in the first quarter, with levels hitting a four month peak in May. As negotiations enter a critical stage, it’s interesting to see 35% of firms anticipate Brexit will have a positive impact on their business activity.”
To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.
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