Usability optimism has fallen to its lowest level since March 2021 as companies weigh the prospect of continued inflationary pressures and supply chain disruptions in the coming months.

Accounting firm BDO’s optimism index fell 4.82 points to 101.93, the second straight month of decline, while the services optimism index dropped 5.35 points to 100.95.

It comes after projections from the OECD suggested the UK would experience the slowest growth rate in the G7, with 3.6% growth in 2022 falling to 0% in 2023.

More than a quarter of medium-sized businesses said they had to price increase due to inflation, according to a poll of 500 corporate heads of accounting firms BDOwhile 19% said they have halted all business investment activities.

Almost one in five (18%) said a spike inflationary and a cost of living crisis set to have a worse impact than Covid.

BDO partner, Kaley Crossthwaite, said: “The fact that business optimism is now at the same level as more than a year ago while the country is still experiencing coronavirus restrictions paints a worrying picture. concern for the UK economy.

“Weakened consumer spending power is certainly weighing on businesses and will continue to hold back growth in the coming months.”


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