Robertson Sumner brings you exclusive insights into the confidence levels of UK private sector businesses for the upcoming year, as revealed by the latest S&P Global UK Business Outlook Survey.

1. Survey Overview: S&P Global conducts a bi-annual Global Business Outlook Survey, capturing the sentiments of around 12,000 manufacturers and service providers worldwide. Additionally, the UK-specific survey gathers data from a panel of approximately 1,400 companies across the technology, services, and manufacturing sectors.
2. Positive Sentiment: The most recent survey conducted in February showed a remarkable surge in optimism among UK businesses, with a net balance of +49% anticipating growth in business activity over the next 12 months, the highest recorded in two years.
3. Leading the Pack: The UK outperformed 11 other economies in the survey, with Ireland following closely behind. Factors driving this optimism include reduced concerns about inflation and interest rates, alongside promising prospects like new products and export opportunities.
4. Staffing and Investment: UK companies are gearing up for expansion, with heightened forecasts for hiring and capital expenditure. Notably, employment projections hit a 12-month high, signaling a positive trajectory for workforce expansion.
5. Inflation and Profits: While companies remain cautious about inflation, there’s a notable uptick in expectations for selling price increases. Despite concerns over rising staff costs, businesses are poised to adjust by increasing selling prices.

In summary, the survey paints a picture of growing confidence among UK private sector businesses, driven by a favorable economic outlook and strategic investment plans.​