UK business confidence increases to 111.1 in November, YouGov and CEBR survey reveals

The survey of 500 executives showed that the November improvement was primarily amid an increase in economic optimismReuters

Confidence levels of British businesses increased on-month in November, according to a survey published on Friday (16 December) by polling firm YouGov and the Centre for Economic and Business Research (CEBR), one of UK's leading economics consultancies.

The survey's index showed that confidence levels had increased by two-points to 111.1 in November, marking the second-highest level since the Brexit vote. A score above 100 reflects net positive sentiment.

The survey of 500 executives showed that the November improvement was primarily amid an increase in economic optimism. This came as businesses also noted a strong increase in capital investments planned for 2017.

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November showed a stark improvement over some of the previous months where business confidence had slumped. It had dipped in July following the EU Referendum vote and had also seen a big decline in October after Prime Minister Theresa May suggested she would take a tough stand on Brexit negotiations, which she had then said would start by the end of March 2017.

However, on the downside, business confidence levels are still down when compared to pre-Brexit levels. The June poll had recorded a score of 112.6, before sliding to 105 in July.

Commenting on the latest survey, Scott Corfe, director at CEBR was cited by City A.M as saying, "To date, businesses are proving quite resilient in the face of what has proved to be an economically and politically tumultuous six months for the UK.

"Although many forecasts believe growth will slow next year, organisations themselves have a relatively bright outlook and are prepared to invest over the coming 12 months."

Tom Rees, director of YouGov Reports, added, "A large part of the improvement is driven by businesses becoming more optimistic again about the prospects for the UK economy over the next year and a decrease in pessimism about their own organisations...However, despite these gains the numbers are still not back to pre-vote levels."

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