Confidence among big businesses in Britain about their profits in the year ahead has hit a record high, helped by the country’s coronavirus vaccinations and hopes for less Brexit disruption.
A survey of chief finance officers showed that the UK’s finance leaders are much more upbeat. They’re anticipating an upsurge in hiring and capital expenditure expected as economic uncertainty eases — thanks to vaccine rollouts, and some easing of Brexit anxiety.
Deloitte, who conducted the survey, say that CFOs anticipate a strong recovery in profits over the next twelve months, with profit expectations back to the previous high seen in mid-2014 at the top of the economic cycle.
Ian Stewart, Deloitte’s chief economist, explains: “Brexit has been a significant dampener on business activity in the last four years but with the UK’s final departure from the EU, such effects are fading. Combined with a successful vaccine rollout and a greatly improved global backdrop we are seeing a turbo-charged surge in business optimism.
“Having come through the deepest downturn in 300 years UK businesses are firmly focussed on growth. Pent-up business and consumer demand are set to power a strong profits recovery, one already anticipated by the surge in equity markets since February.”