LONDON- Businesses in UK saw the strongest output rebound in over a year after a weak 2019 end.
The Confederation of British Industry stated that the monthly output expectations gauge rose +12 in January from December’s +1, the highest since September 2018.
But the measure estimating output over the past three months remained very weak at -16, up only a bit from December’s reading of -20, the weakest since the 2008-09 financial crisis.
“It’s great to see business confidence improve but it remains to be seen whether this will feed through to activity,” Rain Newton-Smith, the CBI’s chief economist, said.
Last month the CBI predicted the economy would grow by 1.2% this year, slowing from 1.3% in 2019.
Britain formally left the European Union at 2300 GMT on Friday, starting an 11-month transition period during which Prime Minister Boris Johnson wants to negotiate a trade deal.
While Johnson aims to avoid tariffs on goods, businesses that are part of complex cross-European supply chains fear new border checks will make them uncompetitive.
“The government must work quickly to establish a future relationship with the EU that can deliver prosperity across the whole economy, as well as refocusing its attention on important domestic priorities,” Newton-Smith said.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.