UK Businesses Stay Downbeat on Economic Outlook Despite Slight Confidence Uptick
Business Sentiment and Economic Survey Findings
Overview of Business Confidence
LONDON, June 1 (Reuters) - British businesses remain downbeat about the economic outlook for the months to come, according to a survey from the Confederation of British Industry, although a separate Institute of Directors survey showed smaller firms were less negative.
Key Factors Impacting Outlook
"Activity continues to be buffeted by weak household spending and clients' reluctance to commit to big expenditure," CBI Deputy Chief Economist Alpesh Paleja said. "Ongoing tensions in the Middle East are adding another layer of pressure, with firms increasingly alert to the risk of further cost increases."
Survey Data and Recent Trends
CBI Survey Results
Output and Price Expectations
• The output expectations balance for CBI members for the next three months edged up to -24 in May from -25 in April but was well below February's 15-month high of -13, before the Iran war
• The output balance for the three months to May fell to -31 from -24 in April, above March's 4-month low of -35
• Selling price expectations remained elevated but fell from April's three-year high
Institute of Directors (IoD) Survey Results
Economic Confidence Index
• The IoD's economic confidence index rose to -53 in May from -64 in April, having touched its lowest in March since the series began in 2016
Survey Methodology
• The CBI data is based on 659 responses between April 27 and May 13 to its surveys of manufacturers, retailers and wholesalers, and consumer- and business services firms
• The IoD data is based on 615 responses between May 15 and May 27, almost half of which employed less than 10 people
(Reporting by David MillikenEditing by William Schomberg)
