BUSINESS confidence is at a 12-month high, according to a survey today .
The Business Trends report from accountancy firm BDO said private sector employers were also more optimistic about creating jobs – but inflationary pressures remained.
BDO’s Optimism Index, which predicts business performance two quarters ahead, rose for the fourth consecutive month to stand at 93.6 in May from 93.0 in April.
The Output Index, which predicts short-run turnover expectations, also improved in May to an 11-month high of 94.4. The Output Index for manufacturers increased to 93.7 from 90.8 before.
The BDO Employment Index, which measures recruitment hopes for the next two quarters, rose to 96.6 in May – the highest since August, 2011. It is the fifth consecutive month that the index has been at or above the crucial 95.0 level that represents employment growth.
However, the survey said dangers to the economic recovery remain. Employers expect costs to rise further. The Inflationary Index increased to 104.2 from 103.4 and is now at its highest point since January last year.
Ian Beaumont, partner and head of BDO in Yorkshire, said: “It’s encouraging to see that business confidence has continued its upward trend”.
