Businesses are set for a tough start to 2022 as they grapple with the spread of Omicron and rising inflation.
Directors’ optimism for the year ahead slipped in December, according to accountancy firm BDO, and is expected to stagnate amid supply chain problems.
Double trouble: Directors’ optimism for the year ahead slipped in December, according to accountancy firm BDO, and is expected to stagnate amid supply chain problems
Omicron concerns and renewed restrictions also derailed progress in production, as BDO’s Output Index slid back from November’s four-month high in the largest drop since August.
However, it remained above the 95-point reading which indicates growth, at 109.76.
Kaley Crossthwaite, a partner at BDO, said: ‘Ongoing uncertainty around Omicron is providing a further blow to UK businesses.’
But in a glimmer of hope, separate figures from trade body Make UK and accountant PwC showed 73 per cent of manufacturers were expecting conditions in their sector to improve throughout 2022.
