Member Article

CBI survey records fall in employer optimism

Employers are less optimistic about their companies’ prospects than they were six months ago due to rising staff costs and higher energy costs, according to the CBI’s latest survey. The twice-a-year survey, produced in conjunction with the Regional Development Agencies, cited red tape, transport costs and inadequate support from government as the factors most likely to inhibit growth over the next six months.

Although most businesses interviewed said domestic orders had risen over the past year, with Scotland and the South West most likely to report an increase, fewer firms are confident about the next 6 months than they were of the period April – September. The South West and North East were the most positive regions – and the only areas more optimistic than in April – while confidence was lowest in the North West.

Doug Godden, the CBI’s Head of Economic Analysis, said: “It is pleasing that orders, output and jobs have increased so robustly over the past year. The majority of regions have shared in this growth and more of the same is expected in the year ahead. “Nevertheless, optimism about the overall business situation has slipped, most likely because of the tight squeeze on profit margins, and cost pressures clearly remain a key concern going forward.”

More than 2,600 companies responded from across England and Scotland.

This was posted in Bdaily's Members' News section by Ruth Mitchell .