Economic news 2nd January 2018
UK fails to match global business optimism
Global business optimism has reached a record high but sentiment among UK companies has fallen in the last year, according to a survey by Grant Thornton. The firm’s quarterly International Business Report reveals that 58% of firms around the world feel optimistic as they head into 2018, the highest level in the survey’s 25-year history. But the net balance of optimism amongst British firms was just 12% in the fourth quarter of last year. However, a net balance of 24% of British companies said that they planned to increase exporting, this rising from 15% last year.
The Times, Page: 43 The Daily Telegraph, Business, Page: 5 The Independent, Page: 50
Britain set to borrow another £300bn
Analysis by the Mail suggests Britain will borrow another £300bn before the Government finally balances the books. The Office for Budget Responsibility has warned that the country will not return to the black until 2031 – three decades after the last surplus in 2001. Michael Izza, chief executive of the ICAEW, said: “Our debts continue to grow and eliminating the deficit is rapidly becoming a five-parliament problem and a millstone for future generations.”
Daily Mail, Page: 62
Half of workers planning to switch jobs
Happiness in the workplace has improved slightly over the last year, but 47% of people still plan to change job in 2018. According to a survey of 1,000 employees by Investors in People, one in four workers are unhappy in their job, down from a third in 2016. Bad management is the most common motivator for employees seeking a new role, cited by 49% of those surveyed by IIP. This was ahead of pay, which was voted as the top reason by 40% of respondents.
The Independent, Page: 4 The Daily Telegraph
FSB: Brexit shouldn’t distract from domestic challenges
The FSB has warned that Brexit should not be a reason for challenges facing small companies in 2018 to be ignored. Chairman Mike Cherry said: “While the process of leaving the EU rolls on, it’s important we don’t lose sight of the domestic issues impacting small businesses every day.” Challenges identified by the FSB include late settlement of bills by large customers, the closure of high street bank branches and poor broadband connections in rural areas.
The Times
Cambridge to lead growth in 2018
Cambridge, Oxford and Milton Keynes are predicted to have the fastest growing economies of all Britain’s cities in 2018. A study from Irwin Mitchell and the CEBR shows the trio of cities are set to prosper the most, based on a substantial skills base. Meanwhile, the dealmaking boom of the past 12 months is also expected to continue next year. Data from Mergermarket shows 1,461 deals involving British companies were announced this year, close to the pre-crisis boom level of 2007.
The Sunday Telegraph, Business and Money, Page: 1 The Sunday Times
Commerce needs clarity on Brexit
Adam Marshall, director general of the British Chambers of Commerce, writes in the Observer that “division and disorganisation” over Brexit is putting the economy at serious risk. He says businesses have been “very patient” in the 18 months since the referendum, but want a swift “standstill” transition agreement as soon as possible in 2018.
The Observer, Page: 1, 5, 32
East-west schism is greater threat than Brexit
Economists have warned that a growing political gulf between central Europe and western EU powers represents a greater risk to the European project than Brexit. Ian Stewart, chief economist at Deloitte, said there was too much “complacency” about institutional risks for Europe presented by widening divides between some central and eastern governments.
The Sunday Telegraph, Business and Money, Page: 1
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