Latest news with #BusinessConfidenceMonitor
South Wales Argus
5 days ago
- Business
- South Wales Argus
Welsh business confidence up but still in negative zone
The increase was identified in a survey of business leaders, although this still remains in the negative zone. ICAEW's Business Confidence Monitor (BCM) for Wales, published on July 24, put confidence at -3.7 on the index for Q2 2025, an improvement from -17.6 in the previous quarter. However, this reading was still below the historic average for the country. ICAEW pointed out that confidence remains fragile due to weak domestic and export sales growth. Manufacturing, engineering, retail, and wholesale in Wales reported some of the UK's lowest confidence levels. The institute added that uncertainty around the outcome of next year's Senedd elections could be a contributing factor, although the UK-US trade deal has likely provided a boost, particularly for exporters. Both domestic sales and exports grew at a lower rate in Q2 than their respective historic averages, according to the BCM. Welsh businesses forecast improvement in both domestic sales and exports growth within the year ahead. The tax burden remained the most prominent challenge for Welsh businesses following April's rise in employer's National Insurance Contributions, with more than half of the nation's companies citing it as a growing source of difficulty. Customer demand and marketplace competition were also cited as challenges. Minimal employment growth in the year to Q2 2025 reflects the increases in National Insurance and the National Living Wage in April, as well as the performance of key sectors. Robert Lloyd Griffiths OBE, ICAEW director for Wales, said: "It's heartening to see that sentiment has increased and is now broadly on par with the UK average. "Nevertheless, our companies are underperforming across most of the key metrics, suggesting we are not out of the woods yet." Nationally, business confidence declined quarter on quarter to -4.2 in Q2 2025.
Yahoo
11-07-2025
- Business
- Yahoo
UK business confidence plummets to three-year low
The Institute of Chartered Accountants in England and Wales (ICAEW) Business Confidence Monitor (BCM) for Q2 2025 has revealed a decline in UK business confidence, with the index dropping to -4.2, its weakest reading since Q4 2022. The survey of business leaders found that high tax worries, weakening economic conditions, and growing global volatility have contributed to the decline. Confidence among exporters has dipped into 'negative territory' for the first time since 2022, with a score of -6.1, amid US tariffs and growing geopolitical instability. The tax burden was cited as a growing challenge by 55% of businesses, nearly matching the prior quarter's peak of 56%. ICAEW members are concerned about the rise in employers' national insurance and potential further tax rises in the Autumn Budget. Expectations for domestic and export sales growth have declined to five-year lows, with domestic sales growth expected at 4.1% and export sales growth at 3.5%. To prevent the decline in confidence from becoming terminal, ICAEW has urged the Chancellor to spare businesses from additional tax hikes in the Autumn Budget. Employment growth expectations for the year ahead fell to their 'lowest level' for almost five years, decreasing to 1.3%. Salary growth has eased to 3% year-on-year, and businesses expect wage growth in the next 12 months to be 2.4%. Selling price inflation is expected to ease, with businesses expecting price growth over the next 12 months to be 2%. ICAEW chief executive Alan Vallance said: 'This negative confidence reading is another stark reminder of the perilous situation facing businesses as they continue to grapple with major tax worries at home and an increasingly bleak global picture. A cocktail of costs, including the national insurance rise and global instability, has made life especially difficult for businesses across the country, particularly exporters.' 'Businesses are the cornerstone of growth, but without an environment that allows them to thrive, further pain is inevitable. Unless the Chancellor spares business from additional tax hikes in the Autumn Budget, economic prosperity will remain a pipe dream. 'As we move into the season of Budget speculation, it's imperative that the government learns from the past year. Constant rumours will only serve to destabilise businesses, so we urge the government to be honest about their plans, to give companies the opportunity to plan ahead and weather the storm.' A recent report from ICAEW also suggested that private equity investment is increasingly influencing the UK accountancy profession. "UK business confidence plummets to three-year low – ICAEW " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
