Business activity rebounds in July |
| UK business activity returned to growth in July, with BDO’s output index rising to 95.29 from 93.41 in June. A reading above 95 signifies growth. The rebound was driven mainly by hospitality and retail, helped by warm weather, domestic tourism and the World Cup, while a modest bounce from the change in Prime Minister also lifted confidence. The report also showed that business confidence improved slightly, rising to 89.96 from a five-year low of 88.45. Manufacturing confidence weakened, however, amid concerns over rising costs and geopolitical tensions. Looking ahead, Scott Knight, head of growth at BDO, said that without greater certainty around the government's economic policies, any improvement in the economy "is likely to be temporary, seasonal and short-lived." |
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