Business Confidence Indicators
16/06/2014
We have murmurings from The Governor of the Bank of England about interest rates going up and there are lots of indicators suggesting the UK economy is doing well. The fall in unemployment is one of the factors the bank of England have their eyes on but other indicators are looking good too.
The ICAEW’s second quarter business confidence monitor is also very positive. This is compiled from accountants in business close to UK companies at the confidence monitor result has been a reasonable accurate indicator for forecasting GDP growth (and decline). They are now forecasting a 3.4% growth for the UK economy this year and the creation of 450,000 new jobs in the next 12 months. (http://www.icaew.com/en/about-icaew/newsroom/press-releases/2014-press-releases/bcm-q2-2014-half-a-million-new-jobs).
But what of other indicators? Is the rush for new and renewal of passports at the Passport office an indicator that we have more money to spend on overseas holidays this year? Then the Tiptree jam indicator is on its way down. This is also the sign of an upturn in the economy as apparently we tend to treat ourselves to good quality jams in recessions, but move our spending onto other things as the economy and our own prosperity improves.
So an upturn in the economy isn’t good for everybody. Some traders at the Royal Three Counties show this weekend were complaining that their takings were the lowest compared to the last 5 years of recession. So what looks good for the economy as a whole will herald a change in spending habits that will catch others by surprise.
Mike Bourne
Categories & Tags:
Leave a comment on this post:
Comments are closed.
You might also like…
The real cost of studying in the UK – what international students need to budget for
Moving overseas to pursue a postgraduate degree is one of the most exciting investments you can make in your future. It's also one of the most significant financial commitments you and your family will ...
Seven things you should definitely prepare for before studying at Cranfield University
You're thinking about Cranfield. Maybe you've done the virtual tour, read through the course pages, spoken to the course director or attended a webinar. Now, you're trying to figure out what life here is actually ...
From insurance to aerospace: why I chose to study a PhD with Cranfield
My path to studying for a PhD wasn't exactly a straight line. I had just graduated with an MEng in Aerospace Engineering from the University of Surrey and, like a lot of people, wasn't ...
How to build a business that keeps growing
Ask any business owner about their ambitions and "growth" will almost certainly feature near the top of the list. More customers, higher revenues, larger teams and new markets are often seen as signs of ...
Three practical ways SMEs can build resilience in a challenging business environment
Economic uncertainty, shifting customer expectations and rapid technological change have become part of everyday business. While no organisation can predict every challenge, small and medium-sized enterprises (SMEs) can improve their resilience by focusing on ...
Six reasons students fall in love with Cranfield University
If you ask a Cranfield student what makes the University special, you won’t just get the usual “great teaching” answer. You’ll hear stories about industry projects that feel like real jobs, friendships built with ...
Mike,
Very interesting! It would be potentially much more useful if we could see a representative set of these indicators in a time-series using statistical process control (SPC) charts to provide real context about so-called trends/improvement signals etc. instead of binary comparisons (such as this month compared to 12 months ago)! The country might start taking some significant improvement actions if they were to do that!,
Regards, David