Friday, August 14, 2020

UK business output hits 17-month low

A decline in output across the services and manufacturing sectors has caused BDO’s Output Index to drop to its lowest level in 17 months, falling by 0.65 points to 96.04 in November.

BDO’s Output Index, which is made up of BDO’s Manufacturing Output and Services Output indices, offers a snapshot of business productivity by weighting data from the UK’s main business surveys.

The constituent indices fell this month, with the Services Output Index sinking sharply by 0.72 points to 97.19, and the Manufacturing Output also falling 0.16 points – the lowest point for each index so far this year. This has been predominantly caused by businesses choosing to run down their stockpiles once a further extension to the Brexit deadline had been agreed.

The results round off a negative year for each of the Indexes that comprise BDO’s Business Trends report. Every index covered by the report (Optimism, Output, Employment and Inflation) is down on average compared to November 2018. The biggest fall is the Manufacturing Output Index, which is down 10.47 points on average this year compared to last.

Commenting on the results, Peter Hemington, Partner at BDO LLP, said: “November’s figures mark the end of a disappointing year for UK businesses. All indices have been driven down by continued political uncertainty and a worsening global economic climate. Businesses are in need of an injection of Christmas spirit, but current indications point to a bleak December.”

Meanwhile BDO’s Optimism Index rose slightly throughout November, gaining 0.12 points to stand at 95.71. Such a rise is comparatively flat compared to the uplift in optimism seen in the run-up to previous general elections:

  • Ahead of the 2017 election, the Optimism Index jumped by 2.31 points
  • Ahead of the 2015 election, The Optimism Index rose 1.15 points

However, such rises are traditionally short lived, with BDO’s Optimism Index tending to fall after general elections.

Mr Hemington added: “Optimism has risen boldly in the run-up to previous elections, which has offset declines once a new government is in place. The fact that optimism remains comparatively sluggish could signal that a more dramatic slump in confidence is on the horizon.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

Investor acquires £41m BTR scheme in Leeds

Habitus Leeds has sold a £41 million Build to Rent (BTR) Scheme just outside the city centre to has to clients of Aberdeen Standard...

Forgemasters manufacturing key components for renewables project

Sheffield Forgemasters is manufacturing key components for a revolutionary new device for the renewable energy sector. In a first for the company, it will supply...

Rebrand for Leeds-based renewable energy pioneers

Planet-U Energy, the Leeds-based renewable energy brokerage, has announced a full creative rebrand following two years of growth from just 1 to 50, and...

Construction readies for speculative Sheffield development aimed at SMEs

A new speculative development of industrial units designed for SMEs will start at Magna 34 Business Park this month. NSM manages the development on behalf...

City solicitors raise £6,400 for Sheffield children’s charity

Almost £6,400 has been raised for Create a Dream Foundation (CADF), the Sheffield-based children’s charity, by city solicitors Wake Smith. Set up in 2017, the...

Private investor swoops for Ossett site in £2m deal

A private investor has snapped up a prominent industrial site in Ossett for more than £2 million. Olway Works on Healey Road was marketed by...

Related news

Investor acquires £41m BTR scheme in Leeds

Habitus Leeds has sold a £41 million Build to Rent (BTR) Scheme just outside the city centre to has to clients of Aberdeen Standard...

Forgemasters manufacturing key components for renewables project

Sheffield Forgemasters is manufacturing key components for a revolutionary new device for the renewable energy sector. In a first for the company, it will supply...

Rebrand for Leeds-based renewable energy pioneers

Planet-U Energy, the Leeds-based renewable energy brokerage, has announced a full creative rebrand following two years of growth from just 1 to 50, and...

Construction readies for speculative Sheffield development aimed at SMEs

A new speculative development of industrial units designed for SMEs will start at Magna 34 Business Park this month. NSM manages the development on behalf...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close