BOSSES are now more upbeat about their businesses and hiring intentions amid early signs of falling inflation, according to an index.
Optimism in June hit its highest point since last August and crossed a threshold which “indicates above-average positivity”, according to BDO, an accounting and business advisory firm.
BDO’s latest optimism index recorded a 0.65-point increase to 100.4 last month, sending it over the 100-point above-average positivity marker.
This was helped by positivity across the services sector and a pick-up in optimism in manufacturing, despite it still facing ongoing supply chain pressures.
BDO partner Kaley Crossthwaite described the situation as “encouraging” as the UK’s labour market saw its fifth consecutive increase in the firm’s employment index amid stronger hiring intentions.
From tongue scraping to saying no, here are 12 health trends to try in 2023
The BDO business trends report data is based on a “poll of polls”, analysing business surveys for an overall picture of economic trends.
It summarises responses from more than 4,000 businesses in different sectors.
Confidence from businesses has been buoyed by the expected easing of inflationary pressures in the coming months.
June saw BDO’s inflation index record its weakest overall reading since August 2021 when the country was emerging from a third national lockdown, falling by 2.06 points to 103.68.
It is believed that businesses may see price pressures subside in the coming months but there may be more cautious consumer spending as households will still have to cope with higher interest rates.
Supply chain problems appear to have dampened business productivity as BDO’s output index fell to 95.95, its weakest since March.
Ms Crossthwaite said: “It’s encouraging to see business confidence and hiring intentions reflect the resilience we’re seeing and hearing from firms, in the face of ongoing supply side challenges.”