Despite the looming shadow of Brexit, UK business has so far been outperforming in many areas. And many are even bullish about the future, with UK hiring intentions having hit a record high, according to new research.
Having just released its monthly report, BDO, the business-advisory firm, saw its Employment Index for March jump from 111.89 to 112.09, representing its highest ever reading and a 3.60 point jump from last year. Moreover, the company reported its business output climbed from a 99.78 ranking to 100.05, the highest reading since August 2017. However, the firms’ optimism about their future output to develop – was not enough to deter performance in manufacturing industries, which dropped by more than two points.
Commenting on the report, Peter Hemington, partner of BDO, said: “The performance of both the manufacturing and services sectors is encouraging for the health of the UK economy and the data suggest that there will be an improvement in GDP growth over the next few months. Businesses are retaining a positive outlook, and this may add to the pressure that the MPC feels to raise rates. But the recovery remains patchy and febrile with Brexit looming. The MPC must hold fast and keep interest rates to a minimum to encourage confidence and growth for UK businesses.”
With Brexit day less than a year away, the true seismic activities felt by leaving the EU will not be detected in employment until much later. For now, it’s only a distant rumbling.