Good and bad news this afternoon. Businesses should expect a rise in outputs for the next quarter, in turn boosting economic growth and increasing GDP, but growth towards the end of the year will slow down considerably, according to the latest business trends report by accountants and business advisors BDO LLP.
BDO’s Output Index has signalled growth for the first time since summer 2011 as the index has risen above 95.0 mark.
The increase from 93.5 in February to 95.7 in March puts the Output Index at its highest level for nine months, suggesting that short term economic prospects for the UK will continue to strengthen.
However, the bad news is that growth in the last quarter of the year will be slow because of the rising oil prices and the return of the Eurozone crisis .
The BDO optimism index dropped back from 98 in February to 96.7 in March – still above the 95 growth level, but firmly below the 100 mark that indicates trend growth.