“UK business output has surged to its highest level in two years, according to a BDO survey, driven by significant gains in manufacturing and services. The output index climbed to 100.77 in July, a robust sign of growth, buoyed by the expectation of further interest rate cuts. Manufacturing rebounded strongly, and services saw a sharp increase in contracts and staffing, particularly in the tourism sector. However, despite this positive trend, the employment index dropped for the 13th consecutive month, reaching its lowest point since 2013. Inflation also showed signs of growth, although consumer inflation remained below the yearly average. The sustained rise in business confidence reflects easing inflation and the hope for continued monetary easing, but experts warn that long-term growth will require targeted government support, particularly in addressing skills shortages and reforming the apprenticeship levy.”
Quotation by Nigel Holland.
- UK business output hits a two-year high, driven by manufacturing and services.
- The output index rose to 100.77 in July, signaling strong growth.
- Manufacturing rebounded above 100, while services thrived on new contracts.
- Employment index dropped for the 13th month, lowest since 2013.
- Experts urge government support to sustain growth and address skill shortages.