Theresa May expresses her optimism about Britain’s economic success while UK business outlook seems ominous

PM at the CBI 2016 conference
Prime Minister Theresa May gave a speech at the annual Confederation of British Industry (CBI) Conference at the Grosvenor House Hotel in London.
Credit: Tom Evans. Copyright: Crown Copyright

UK Prime Minister Theresa May attended the annual Confederation of British Industry (CBI) conference on Monday where she expressed her confidence about the country’s economic outlook in an attempt to seek business support ahead of the harsh period till the conclusion of the Brexit deal.

However, a quarterly report published from data firm IHS Markit shows that British businesses’ uncertainty has increased to a great extent due to political stress. The latter is clearly stated in the report where it is pointed out that UK business confidence has reached its lowest level since 2009.

May wants companies by her side

The business leaders gathered two days ago in London for the CBI conference where experts’ insights on how to tackle the evolving issues that firms face was discussed together with the hot topic on the UK’s relationship with the world and the European Union ahead of the European Council summit on Sunday.

The British PM was there to address to the business industry that Britain is heading to Brussels for a deal that will secure what is best for the UK and will enhance the country’s economic prospects. Furthermore, Ms May requested the support of the all the companies in order to be able to take the most of the imminent Brexit deal and unlock all the substantial opportunities. More specifically, Theresa May stated last Monday: “There is one paramount issue facing our economy at the moment. We now have an intense week of negotiations ahead of us. What we’ve agreed puts our future economic success first. The deal we will secure with the EU has securing jobs and prosperity at its heart.”

CBI President backed up Theresa May and mentioned that the Brexit deal that the PM will bring to the UK to be voted should be supported in order for the country to thrive. In detail, John Allan said at his opening speech at the 2018 CBI Annual Conference: “But to ensure that the future continues to be prosperous, that working relationship between business and government must continue. The uncertainty of Brexit will hinder that future prosperity and that is why compromise and collaboration must be reached. The message from business to politicians is clear – back the deal as another one is not waiting in the wings while the outcome of the 2016 referendum must be upheld.

IHS Markit reports lost business confidence

On the other hand, the recent report by IHS Markit clearly reveals that the British firms have been hit tremendously by the country’s political uncertainty and have become less confident about the growth outlook compared to what it was believed last summer. Thus, based on the IHS Markit UK Business Outlook survey, the net balance of the companies waiting for a rise in business activity in the next 12 months is +32%, which is 7% down from June’s figures.

Tim Moore, Associate Director at IHS Markit, outlined that: “Intense headwinds from domestic political uncertainty and a more subdued worldwide economic outlook have resulted in a fall in UK business confidence to its weakest since the IHS Markit Global Business Outlook series began in October 2009. Reports from survey respondents widely indicate that Brexit-related concerns have weighed heavily on business investment and staff hiring plans.”

What is more, the seasonally adjusted IHS Markit/CIPS UK Services PMI® Business Activity Index dropped to 52.2 in October from 53.9 in September pointing the slowest pace of business activity expansion since March. The latter shows that the UK’s services sector, the largest contributor to economic growth, has slightly developed and lost momentum mainly due to Brexit concerns and the outcome of the upcoming deal.

All in all, it is quite obvious that the UK business environment is under continuous turmoil the moment that Theresa May wants to calm the negative outlook by taking them along and ensuring their support at a crucial point in time. Brexit negotiations seem to be a step closer ahead of the EC meeting but the draft deal as it stands now is not likely to be approved by the majority of the UK Parliament; something that is not going to leave the business world unaffected.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Endocrine disruptors: A strategy for the future that protects EU citizens and the environment

Victims of terrorism remembered

UN agencies welcome green light for Rohingya projects in northern Myanmar; urge ‘more effective access’

Slovakia and its failure to abide by the European law

European Parliament the most trusted EU institution

Parliament’s proposal to reinforce flagship programmes is worth 39 billion euros

How will the NATO-EU competition evolve in the post Brexit era?

Here’s how to bring agility into the boardroom

What if the doctor become a patient?

What COVID-19 tells us about the changing nature of disaster risk

Australia wants to build a giant underground ‘battery’ to help power the nation

Solutions for cultural understanding: medical students’ perspective

How robotics can help humanitarians bridge the digital divide

Japanese law professor elected new judge at the International Court of Justice

Mobile Technology saving lives: changing healthcare systems with simple technology solutions

Is friendly public transport the answer to the loneliness epidemic?

How the world can ‘reset’ itself after COVID-19 – according to these experts

The true EU unemployment rate may have soared to 21.9%

Switzerland: prepare for population ageing to maintain high living standards

On World Bee day, human activity blamed for falling pollinator numbers

5 droughts that changed human history

Want more climate action? Let’s show how good a planet-friendly life can be

EU’s Mogherini visits Turkey “to step up engagement” and highlight interests

There is huge talent in the world’s refugee camps. We must realize this overlooked potential

Germany and France only care about keeping their borrowing cheap

The rise of alternative medical practices in modern sports

‘Working night and day’, UN health agency seeks to prevent global coronavirus crisis

WEF Davos 2016 LIVE: “Chinese economy has great potential, resilience and ample space for policy adjustment”, China’s Vice President Li Yuanchao reassures from Davos

World’s Press Calls on the United Kingdom to Address Press Freedom Concerns

G7 summit: Trump Vs. G6 leaders on trade and climate change

A reality check on inclusive innovation

“The markets have moved on renewables, policy makers must keep up”, A Sting Exclusive by Erik Solheim, Head of UN Environment

European Commission and World Bank Group renew agreement to strengthen development cooperation

Coronavirus global response: EU Humanitarian Air Bridge to Iraq and new funding

Impressive African health gains at risk from changing trends: WHO report

AIESEC @ European Business Summit 2014: The Digital Era: A New Business Frontier

‘New tech’ business model threatens decent work conditions, warns UN

Commission launches consultation to seek views on Digital Services Act package

Towards a European Republic

The hazards of “heroism” in the time of COVID-19

Cyprus banks under scrutiny

Fossil fuel support is rising again in a threat to climate change efforts

Ukraine-EU deal sees the light but there’s no defeat for Russia

Free movement of services: Commission takes further action to ensure a well-functioning Single Market for professionals

A day in the life of a Rohingya refugee

How to close the gender pay gap in three steps

The mental health of health professionals: is it worth it?

UN chief condemns deadly attacks in Pakistan

Hot air behind your cold fridge? Why the future of cooling must be sustainable

The world to teach Germans to…un-German

5 futuristic ways to fight cyber attacks

World Health Organization calls crisis meeting over deadly Ebola outbreak in DR Congo

Brazilian officer a ‘stellar example’ of why more women are needed in UN peacekeeping

Mergers: Commission approves Assa Abloy’s acquisition of Agta Record, subject to conditions

The European Union and Central Asia: New opportunities for a stronger partnership

EUREKA @ European Business Summit 2014: Innovation across borders – mobilising national R&D funds for transnational innovation in Europe

Bulgaria: MEPs call for EU values to be fully and unconditionally respected

How COVID-19 is taking gaming and esports to the next level

Don’t understand the US-China trade war? This metaphor could help

3 cognitive biases perpetuating racism at work – and how to overcome them

More Stings?

Advertising

Trackbacks

  1. […] Our lawyers at The Smart Move 2 UK understand the consequences of a business decision and are keen to provide our expertise to anyone who needs it. Today, let’s give you a brief overview of this crucial step in getting a UK Business visa and setting up a flourishing business in a Briton dynamic new market. […]

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s