Strong growth in domestic demand has raised concerns of the long term sustainability of the economic recovery, according to the latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM). Business confidence is high but sector imbalances remain as export growth remains weak and skill shortages become more prevalent.
Key findings for Q1 2014 show:
- The BCM Confidence Index stands at +37.2, up from +31.7 in Q4 2013, a new record high
- The UK economy is forecast to grow by 1.5% in Q1 2014
- Businesses report the fastest investment growth since 2008, but growth in exports is expected to fall back – a concern due to the current trade deficit.
As well as continued weak export growth, other stumbling blocks for the economic recovery include the availability of non-management skills becoming more of an issue and significant spare capacity remaining in the manufacturing and construction sectors.
For further information please visit ICAEW’s website.