The UK economy in April – A Mixed Picture

It has been reported that the economy grew in February and continues to move out of recession. A survey of City economists for Refinitiv suggest GDP rose by 0.1% in February, delivering the first consecutive months of growth since September.

However, it is not yet time to relax business vigilance as the headlines suggest that the UK economy is not yet on a reliable upward trajectory.

Here are several reasons why.

Allianz Trade has predicted that post-Brexit border controls coming into force this month will cost British businesses £2bn.

Another study has revealed that one in three businesses are understaffed at least once a week due to a lack of available employees with employers reporting difficulty in recruiting the right people.

A fall of 156,000 in the number of people in employment in the last quarter to the end of February on the previous one, gives a clear sign that all is not well.

A British Chambers of Commerce (BCC) survey has just reported that more than half of its members have signalled their intention to raise their prices over the next year due to high wage bills.

The survey also highlighted conflicts around the world and the costs of post-Brexit checks on imports from the EU as factors influencing pricing expectations.

It said that while 56% of respondents expect turnover to grow over the next year there was no overall improvement in business conditions.

Businesses will have to continue to be meticulous in monitoring cash flow for a while yet and we have a free tool here to help you.

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