Pound It Out
For British businesses, the amount of hiring is expected to increase over the next six months, but due to falling confidence of manufacturer’s, overall growth of the nation’s economy is not expected. The accounting firm called BDO came up with an optimism index that measures business performance two quarters ahead rose from 90.6 in February to 92.2 in March. However the numbers are still below 95 which BDO says marks the dividing line between growth and contraction. However, BDO’s employment index, which measures the United Kingdom’s businesses’ hiring intentions over the next two quarters, climbed up to 96.0 in March, which is the the highest since August 2011.
Unfortunately, the British economy appears to be already approaching its third recession in five years. With the falling value of the pound, which makes imports more expensive, and weak demands for British exports because other neighbors in the European Union are struggling as well, which decreases the confidence of manufacturers. Manufacturing makes up a fifth of the nation’s economy which is why it is the spearhead of the government’s recovery efforts.
Written by Constantine Kostikas