LONDON, March 15 (Reuters) – British businesses are more likely to expect activity back this year than their overseas counterparts, and growth is expected to be stronger than ever since 2015, a study showed Monday.
The global count of 12,000 manufacturers and service providers, conducted three times a year for Accenture consultants by data company IHS Markit, showed that 68% of British companies expected activity to rise, and 11 % fall.
The net balance of + 57% is the highest since June 2015 and up from + 34% in October, and also above readings for businesses in the United States, Japan and continental Europe.
“After a tough year it’s encouraging to see business confidence kick back,” said Accenture consultant Rachel Barton.
The British economy traveled 10% last year – the biggest drop in more than 300 years as many areas of industrial activity were suspended due to the coronavirus outbreak. Government budget analysts said this month that it would take the economy by mid-2022 to regain the pre-COVID volume.
Britain suffered the highest death toll in Europe from COVID, but they are now distributing vaccines faster than other European countries and the government hopes to lift social speed limits by the end of June.
The strongest hopeful improvement in the study – which was conducted from February 11 to February 25 – was in the hotel and restaurant sector which has been hit harder by the crisis.
Separately, manufacturing trade group Make UK said on Monday it was revising its 2021 growth forecast to 3.9% from 2.7%. British industrial output fell 8.6% last year – the biggest drop since records began in 1949.
“Following last year’s seismic shock to the sector, manufacturers are now beginning to move through the gears and accelerate to a recovery as domestic demand increases and large markets also develop. start building, ”said UK chief executive Stephen Phipson.
However, he warned that data in January which showed a 40% decline in exports to the EU added to evidence that post-Brexit trade restrictions caused more damage than the ‘fundamental problems’ acknowledged by the government. so far.
Make UK, in its most recent study, reported that members had reported another fall in export demand which was opposed to domestic recycling and for exports based in other countries. (Reporting by David Milliken, edited by Andy Bruce)