With non-essential retailers and other businesses in England opening their doors again for the first time since January as the Government continues implementing its ‘roadmap’ out of lockdown, multiple studies have pointed to a fast economic resurgence and peak highs in business confidence.
As reported by The Guardian and other outlets, small, medium and larger FTSE firms all reported improved sentiment, although exporters – impacted by both the COVID-19 crisis and Brexit disruption – still showed signs of suffering.
What’s been revealed by the latest studies?
Much of the optimism among business leaders is grounded in hopes that Britons will respond to being freed from lockdown by unleashing a multibillion-pound spending spree.
Research by the Centre for Economic and Business Research (CEBR), for example, predicted that savers would reach into their £192 billion of lockdown rainy-day funds to boost consumer spending by £50 billion. The economics consultancy said that it expected around £314 million of expenditure in the hospitality sector during its first week of reopening.
Meanwhile, the Post Office has released figures indicating that Britons withdrew £590 million in cash during March – a monthly figure not matched since September last year.
It should perhaps be unsurprising, then, that a survey of bosses at some of the biggest public companies in the UK found that respondents anticipated a “strong recovery in profits over the next 12 months, with profit expectations back to the previous high seen in mid-2014 at the top of the economic cycle.”
The firms participating in this research account for nearly a quarter of the value of London-listed companies, and their forecasts for hiring and investment were at their highest levels in almost six years.
As for smaller companies, the Federation of Small Businesses (FSB) said it hadn’t seen its members showing such a high level of optimism since 2014. Some 1,700 businesses were polled, with almost six in 10 (58%) expecting to record a better performance this quarter, compared to the 31% braced for a deterioration in their situation.
Other data reported by the newspaper indicated that business activity went up in 11 of the UK’s 12 regions over the last three months. The East of England recorded the most impressive growth, followed by the West Midlands and Yorkshire & Humber, although Northern Ireland did see a decline.
Is your business a “coiled spring” ready to unleash its potential in the months ahead?
On the backdrop of such optimism, you might be wondering what more you can do to position your own business advantageously for the economic ‘bounce-back’ that many are anticipating in the coming months. Well, one good move could be to partner with the right low-cost bookkeeper.
Here at Britebooks, we offer a cloud-based bookkeeping service that it is easy for businesses of many different sizes to take advantage of, various price points being available in accordance with annual turnover.
Bank of England chief economist Andy Haldane surprised many observers in February, when he suggested that optimal conditions could render the UK economy a “coiled spring” ready to explode. Now, it seems that his positive outlook may have been well-founded.
For more information on how Britebooks can serve as your business’s convenient, future-proof and low-cost bookkeeper in 2021, please don’t hesitate to reach out to us directly today in Plymouth or Wellington.
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