"The UK's post-summer economic rebound has been short-lived, according to the latest Business Trends report from business advisory and accountancy firm BDO LLP. BDO's Output Index declined to 98.53 in September, down from 101.21 in the previous month and falling below the 100-point threshold which represents long-term average growth levels over the past 15 years. After exceeding 100-points in August for the first time in over three years, September's decline signals that UK business momentum has once again stalled."
"This decline was largely driven by the services sector, where output fell from 102.06 to 99.07, marking the sharpest month-on-month fall since September 2022, when UK inflation had just hit double digits. The downturn reflects a combination of ongoing pressures from April's payroll tax changes, dampened demand from economic uncertainty, and wet weather conditions in September, all of which collectively weakened consumer activity."
"Wariness ahead of the Autumn Budget weighed on businesses in September, as they stayed in "wait mode" ahead of potential policy announcements. The labour market continues to unwind with the BDO Employment Index -which tracks wider market trends including headcount, vacancies and hiring expectations - remaining on its general downward trend seen since late 2023. As firms remain cautious amid payroll costs and policy uncertainty, BDO's Employment Index fell to 93.90 in September, representing another 13-year low."
BDO's Output Index declined to 98.53 in September, down from 101.21 in August and below the 100-point long-term average threshold. Services output fell from 102.06 to 99.07, the sharpest month-on-month drop since September 2022, while manufacturing slipped to 94.28 amid supply chain disruptions and trade uncertainty. The downturn reflected payroll tax changes from April, dampened demand from economic uncertainty, and wet September weather that weakened consumer activity. Business sentiment softened as firms stayed in wait mode ahead of the Autumn Budget. The Employment Index fell to 93.90, a 13-year low, with vacancies and headcount expectations down.
Read at London Business News | Londonlovesbusiness.com
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