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.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

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

Macron’s Presidency: what the young generation’s expectations are

Health without borders: How we can Improve International Collaboration in Health Care

3 reasons we should all care about biodiversity

ISIL’s ‘legacy of terror’ in Iraq: UN verifies over 200 mass graves

What is hydroponics – and is it the future of farming?

Why are the Balkans’ political leaders meeting in Geneva this week?

Do all you can to resolve climate change ‘sticking points’ UN chief urges South-East Asian leaders, in Bali

Chernobyl nuclear disaster-affected areas spring to life, 33 years on

The Italian crisis may act as a catalyst for less austerity

End ‘political opportunism’ that’s letting hate speech flourish, urges top UN genocide official

Migration crisis update: Greece could probably say goodbye to Schengen really soon

Philippe de Backer of ALDE at European Business Summit 2015 stresses: “Reinvent your business”

UN food relief agency airlifts aid to DR Congo province hit by Ebola outbreak

IQ scores have been falling for decades, new study finds

Capital markets selloff: The financial moguls send messages to monetary authorities

Globalization 4.0 must build a better world for working people

TTIP is not dead as of yet, the 15th round of negotiations in New York shouts

It’s time we took a seat ‘at your table’: Guterres calls on world youth to keep leading climate emergency response

More answers from Facebook ahead of Parliament hearing today

The creative technology and its advancements

Brexit: European Commission intensifies preparedness work and outlines contingency action plan in the event of a no deal scenario with the UK

EU budget for 2021-2027: Commission welcomes provisional agreement on Horizon Europe, the future EU research and innovation programme

A Sting Exclusive: “Consumer expectations for the 2015 UN summit on climate change”, Director General of BEUC Monique Goyens outlines from Brussels

EU budget 2021-2027: Commission calls on leaders to set out a roadmap towards an autumn agreement

Governments and non-state actors need to take urgent action to meet Paris Agreement goals

Travel the world, find yourself

‘No safe way’ into battle-scarred Afghan city of Ghazni to deliver aid as traumatized children search for parents

This project is turning abandoned fishing gear into volleyball nets

5 ways to fast-track the transition to a carbon neutral world

‘Ground-breaking innovation’ needed in cities, where battle for sustainable development will be won or lost, says UN agency chief

Why we need a moderate approach to moderating online content

‘Global sisterhood’ tells perpetrators ‘time is up’ for pandemic of violence

Medical students as the critical link to address climate change

‘Passport to dignity’ that schools represent may expire fast, without emergency funding warns UN Palestine refugee agency

Fostering intergenerational solidarity and cooperation through age-friendly environments: the right answer to Europe’s demographic challenge

Prisoner executions in Belarus ‘simply unacceptable’, says UN rights body

These charts show where the world’s refugees came from in 2017 – and where they’re heading

Why saving our forests should be a global priority

Consumer product quality: Parliament takes aim at dual standards

EU Parliament: No EU-US trade agreement without safe data

China hopes EU Commissioner De Gucht drops super anti-dumping tariff on solar panels

Environmental labelling, information and management schemes are central to the circular economy

‘Safe Eurobonds’: a new trick to betray the south euro area countries

Moves to create a Kosovo army have ‘deteriorated relations’ with Serbia: UN peacekeeping chief

Although Greece is struggling to pay salaries and pensions Varoufakis is “optimistic”; the Sting reports live from EBS 2015

OECD sees global growth slowing, as Europe weakens and risks persist

Israel @ MWC14: Israel The Start App Nation

Backed by UN, Asia-Pacific countries to advance space technology for ‘development transformation’

UN member states express their will to tackle global migration but specific actions are still missing

‘Virtual Biopsy’ device detects skin tumours in 15 minutes

Fleeing Venezuela: MEPs to probe humanitarian conditions in Colombia and Brazil

CDU-SPD agree the terms for EU’s Banking Union

The ECB again takes care of the bankers not the people

European Parliament calls on Russia to end occupation of Georgian territories

A Sting Exclusive: “Change is challenge, change is opportunity”, Commissioner Bienkowska cries out live from European Business Summit 2015

This new way of understanding disease is changing medicine

UN mission welcomes Afghan government’s announcement of Eid holiday ceasefire

The EU responds to US challenges by fining Apple with €13 billion

Climate change will force us to redefine economic growth

European Commissioner for Youth wants young people to be at heart of policy making

More Stings?

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