Daily Newsletter

03 October 2023

Daily Newsletter

03 October 2023

UK business confidence dips to 36% in September

Despite the decline, current confidence levels still surpass historical averages, highlighting ongoing trends in the UK business landscape in 2023.

Mohamed Dabo October 02 2023

Business confidence in the UK took a hit in September, dropping to 36%, a five-point decline from the recent 18-month peak of 41% seen in August.

The decrease in confidence is attributed to a less optimistic economic outlook and reduced expectations for trading prospects in the coming year.

Trading prospects dip as optimism wanes

Companies reported a decrease in trading prospects for the upcoming year, with 52% of businesses anticipating stronger activity, down by five points from the previous month.

In contrast, only 11% of businesses expected weaker outcomes, with no change from the previous month.

This shift resulted in the net balance falling by five points to 41%, compared to 46% in August.

Wider economic optimism also declines

Optimism regarding the broader economy saw a decline as well, with 51% of firms expressing greater optimism, a decrease of four points.

Conversely, 21% of firms reported being less upbeat, which is an increase of two points from the previous month.

The net balance for economic optimism fell by six points to 30%, though it remains relatively high compared to earlier in the year, marking the third-highest level in 2023.

Continued confidence above historical average

Despite the recent dip, overall business confidence levels continue to remain significantly above the 22-year historical average of 28%.

This trend reflects a general upward trajectory in confidence throughout 2023, with monthly increases consistently outweighing subsequent declines.

For the full report and detailed insights, you can access the information on this webpage: Link to Report.

Luxury goods, digitalization, and personalization identified as key drivers of the duty-free retail market

Per GlobalData, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats.

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