Spiralling costs and a tight labour market dent optimism
Business confidence has plunged to its lowest level in 13 years as Britain braces for what could be its longest recession on record.
A new study from Accenture and S&P Global found that optimism among UK businesses fell by 10pc in October to the lowest it has been since 2009, amid spiralling costs and a tough labour market. Inflation is currently running at 10.1pc.
Accenture’s Simon Eaves said: “As we head towards what is likely to be a tough winter for the UK economy, business confidence has understandably been shaken.”
Hospitality companies are among the gloomiest, the study found, amid fears that more people will be forced to cut back on spending in restaurants and pubs over the festive period and as business owners struggle with surging energy bills. In that sector, more companies were pessimistic on their outlook than positive.