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U.K. Business Confidence Rose in February, BDO Index Shows

U.K. business confidence rose in February, according to an Optimism Index released today by accountants BDO LLP.

BDO’s Optimism Index, which predicts business performance two quarters ahead, stood at 90.6 in February from 88.9 in January, which was a 21-year low. It remains below the 95.0 mark that indicates growth. The Index has been below that threshold since May 2012.

Despite this increase in confidence, businesses still do not anticipate growth in the next two quarters, BDO said.

An increase in the BDO Inflation Index, to 101.5 from 100.4 in January, points to further pressure on businesses’ bottom lines, BDO said in an e-mailed statement.

BDO’s Output Index, which predicts short-run sales expectations, declined to 92.1 in February from 92.3 the month before, further away from the 95.0 mark.

The surveys cover 4,000 different respondents from U.K. companies employing about 5 million people. BDO didn’t specify when the survey was conducted.

-- Editor: Dick Schumacher

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