The UK's business confidence has dropped to a 13-year low, according to a survey
conducted by the Institute of Chartered Accountants in England and Wales
(ICAEW).
The ICAEW's latest Business Confidence Monitor (BCM) showed that record high
inflation and rising costs, including energy and the cost-of-living crisis, have
adversely affected business confidence.
The latest monitor showed confidence had fallen to -23.4 for Q1 2023, the lowest
since the global financial crisis of 2009. This has dropped considerably when
compared to -16.9 for Q4 2022.
Most sectors have shared this decline, with construction, property, retail and
wholesale and manufacturing the least confident. Annual growth in domestic sales
was slowest in the manufacturing and engineering (3.9%) and retail and wholesale
(4.8%) sectors.
Michael Izza, Chief Executive of the ICAEW, said:
'Financial challenges have had a big impact on certain sectors and across the
board investment is set to fall over the next year, but it is notable that
sentiment could be starting to level off.
'With confidence at a decade low, it's time for the Chancellor to outline his
long-term vision for growth for Britain, injecting resilience into the
economy and bringing in a period of renewal for the future.'
Internet link: ICAEW website