Brexit uncertainty lingers, wage growth has slowed, and economic activity has stalled; so it’s little wonder business confidence is floundering. Retailers are battling low profits and low consumer confidence, creating a rather cynical business landscape on the high street. Other sectors such as construction and manufacturing, are equally experiencing subdued activity as they battle Carillion’s aftermath and stalled demand from international economies. Closer scrutiny of business finances and cash flow, as well as the subtle advances in trade talks with Brussels., could suggest a brighter future for the economy.
A second-quarter survey of more than 6,000 businesses has found investment to have fallen over the quarter, along with a disconcerting dwindling confidence from business owners. The BCC who conducted the survey, admits Brexit is a “key factor” but that long-standing issues are also holding back economic growth.
Business growth is undeniably linked to the government’s decision to leave the European Union, but its recovery does not rely on a positive political outcome. Businesses can boost sentiment themselves, by contacting a third party like us at the Credit Protection Association. Our debt recovery services chase down unpaid invoices and residual debt to improve our Members’ financial position, as well as their confidence in their abilities to run a successful business.
“Amid growing international uncertainty, from escalating trade disputes to oil price rises, the UK economy continues to grow at a sluggish rate,” Adam Marshall, the BCC’s director-general, said.
“Brexit is a key factor, but long-standing structural issues are also holding companies’ growth back.” He said that the availability of skilled staff was the biggest issue and called on the government to get “a handle on the disarray in the training and apprenticeship system” and to set “out a clear immigration policy that enables firms to cover vacancies”.
Without those, “the economic potential of many areas across the UK will continue to be held back”.